Bookkeeping

Bookkeeping

Chart of Accounts Template

Maintain a standardized chart of accounts organized by category:

Assets

• 1000-1999: Current Assets
  • 1010: Cash - Operating Account
  • 1020: Cash - Reserve Account
  • 1100: Accounts Receivable
  • 1200: Prepaid Expenses
  • 1300: Inventory (if applicable)
• 2000-2999: Fixed Assets
  • 2010: Equipment
  • 2020: Accumulated Depreciation - Equipment
  • 2100: Software Licenses
  • 2200: Accumulated Amortization - Software

Liabilities

• 3000-3999: Current Liabilities
  • 3010: Accounts Payable
  • 3020: Accrued Expenses
  • 3030: Short-term Debt
  • 3100: Deferred Revenue
• 4000-4999: Long-term Liabilities
  • 4010: Long-term Debt
  • 4100: Lease Obligations

Equity

• 5000-5999: Equity
  • 5010: Common Stock
  • 5020: Additional Paid-in Capital
  • 5100: Retained Earnings

Revenue

• 6000-6999: Revenue
  • 6010: Product Revenue
  • 6020: Service Revenue
  • 6100: Other Income

Expenses

• 7000-7999: Cost of Goods Sold
  • 7010: Cost of Revenue
  • 7100: Infrastructure Costs
• 8000-8999: Operating Expenses
  • 8010: Salaries & Wages
  • 8020: Benefits
  • 8100: Rent
  • 8200: Utilities
  • 8300: Marketing & Advertising
  • 8400: Professional Services (Legal, Accounting)
  • 8500: Software & Subscriptions
  • 8600: Travel & Entertainment
  • 8700: Office Supplies
  • 8800: Insurance
  • 8900: Depreciation & Amortization
• 9000-9999: Other Expenses
  • 9010: Interest Expense
  • 9100: Taxes

Journal Entry Format

Record all transactions using double-entry bookkeeping:

### Journal Entry: {Description}
- **Date**: YYYY-MM-DD
- **Reference**: {Invoice # / Transaction ID}
- **Debit Account**: {Account Code} - {Account Name} | Amount: $X
- **Credit Account**: {Account Code} - {Account Name} | Amount: $X
- **Description**: {Detailed explanation}
- **Approved By**: {Name}

Example:

### Journal Entry: Monthly SaaS Subscription
- **Date**: 2026-02-01
- **Reference**: INV-2026-001
- **Debit Account**: 8500 - Software & Subscriptions | Amount: $500
- **Credit Account**: 3010 - Accounts Payable | Amount: $500
- **Description**: Monthly subscription for cloud infrastructure tools
- **Approved By**: Finance Controller

Monthly Close Checklist

Complete these tasks before closing each month:

• All transactions recorded and posted
• Bank accounts reconciled
• Credit card accounts reconciled
• Accounts receivable reviewed and aged
• Accounts payable reviewed and aged
• Prepaid expenses reviewed and amortized
• Accrued expenses recorded
• Depreciation calculated and posted
• Amortization calculated and posted
• Deferred revenue reviewed and recognized
• Intercompany transactions eliminated (if applicable)
• Trial balance reviewed for errors
• Financial statements generated
• Budget vs actual variance analysis completed
• Close date documented in accounting system

Reconciliation Procedure

Bank Reconciliation

1. Obtain bank statement for the period
2. Compare bank statement to general ledger cash account
3. Identify and document:
   • Outstanding checks (not yet cleared)
   • Deposits in transit (not yet recorded by bank)
   • Bank fees and charges
   • Interest earned
   • NSF checks or other adjustments
4. Prepare reconciliation statement showing:
   • Bank balance per statement
   • Add: Deposits in transit
   • Less: Outstanding checks
   • Add/Less: Other adjustments
   • Equals: Adjusted bank balance
   • General ledger balance
   • Add/Less: Adjustments
   • Equals: Adjusted general ledger balance
   • Both adjusted balances must match
5. Document any discrepancies and resolve
6. File reconciliation with supporting documents

Credit Card Reconciliation

1. Obtain credit card statement
2. Match each charge to receipt/invoice
3. Verify business purpose for each expense
4. Code expenses to appropriate accounts
5. Reconcile statement balance to general ledger
6. Flag any unauthorized or unusual charges

Invoice Template

When creating invoices for customers:

# Invoice

**Invoice Number**: INV-YYYY-###
**Date**: YYYY-MM-DD
**Due Date**: YYYY-MM-DD

**Bill To**:
{Company Name}
{Address}

**Description**:
- {Item/Service} | Quantity: X | Rate: $X | Amount: $X
- {Item/Service} | Quantity: X | Rate: $X | Amount: $X

**Subtotal**: $X
**Tax**: $X (if applicable)
**Total**: $X

**Payment Terms**: Net 30
**Payment Instructions**: {Bank details / Payment link}

Record Retention

• Invoices: 7 years
• Bank Statements: 7 years
• Tax Returns: 7 years (permanent for some entities)
• Financial Statements: Permanent
• Contracts: Duration of contract + 7 years
• Payroll Records: 7 years