This article was originally posted on QuickBooks Firm of the Future.
QuickBooks Online Charts of Accounts to download for various industries
For example, if you had an automotive repair shop client, the CoA might include accounts for revenue accounts for tires and parts, or inventory accounts for oil and lubricants—accounts that are not built into QuickBooks.
If you’re familiar with an industry, you can advise your client as to the best CoA, knowing you can add or take away accounts as you work together to ensure the cleanest books possible.
If you’re new to QuickBooks or need a refresher on how to set up a CoA, take a look at this In the Know video that explains how CoAs work in QuickBooks.
We asked some of our authors to provide a bit of background on various industries, along with a sample CoA, and in some cases, recommending QuickBooks Apps that integrate with QuickBooks Online. Here’s what they provided.
Art and Photography
Provided by Kathryn Butts, Fourlane
As with all businesses, artists and photographers will have the typical ordinary and necessary expenses for running a business. Besides advertising and a website, there are expenses for business insurance, professional fees for lawyers and accountants, office supplies and software subscriptions, business meals, and more.
The CoA includes asset accounts (bank accounts and accounts receivable), liabilities (credit cards and accounts payable), and equity (owner draws and income), cost of goods sold, and expenses. Of course, each business will have its own unique CoA, but there will be some common elements shared across industries.
In addition to managing the CoA and producing financial reports, QuickBooks Online Advanced is a great option for artists and photographers because so much of what they need to capture is found right with the mobile app: mileage tracking, receipt capture, and fixed asset tracking With the mobile app, clients can quickly send invoices and take payments right from the palm of their hand. There is no need to be stuck behind a desk!
There are also numerous app integrations, such as PayPal, Etsy, Square, or Shopify, to help bring in sales transactions done from a webstore. If your clients need a more robust import option, they can use a tool such as Synder to bring in transactions from Stripe, Shopify, and TikTok all through one app connection.
Churches and Other Nonprofits
Provided by Esther Friedberg Karp, MBA, CompuBooks Business Services
Contrary to what many people believe, nonprofit organizations don’t require pricey industry-specific software to track their finances. They can use QuickBooks Online as long as they set it up and use it correctly.
If you find yourself working with a nonprofit client such as a church or synagogue, here are three basics you’ll need to know:
- You’ll want to set the Company type to Nonprofit Organization (Form 990) in Account and Settings. That will change some of the terminology in the account and detail types. For example, the “expense” account type becomes “expenditures” and “income” becomes “revenue.”
- You’ll want to make sure that the CoA includes all the general ledger accounts your client’s nonprofit organization requires.
- As is the case with regular for-profit entities, there is no one-size-fits-all chart of accounts for nonprofits. Whether you’re dealing with churches, synagogues, parochial schools, other religious organizations, or non-religious charities, there will be variations depending on how the nonprofit conducts itself. You will likely want to alter some of the account and detail types I’ve suggested, as well as create parent and sub account groupings to suit your clients’ situations.
Concrete Companies
Provided by Dave Kersting, Capovario
In business trades, the concrete industry plays a key role in construction and infrastructure, requiring expertise in materials, mixing, and large-scale project execution with complex logistics. Concrete businesses handle significant raw materials, labor, and specialized equipment, making detailed financial management essential.
Similar to many construction companies, concrete firms rely on job costing to ensure profitability. The CoA must track raw material costs, equipment usage and maintenance, and project-specific expenses. In addition, companies need to distinguish job-related expenses from operating expenses to avoid misclassification. A tailored CoA is vital for monitoring financial health, finding cost-saving opportunities, and ensuring accurate project billing.
I advocate for creating a CoA that uses parent and child accounts. Parent accounts serve as broad categories for income, expenses, assets, and liabilities, while child accounts provide specific breakdowns within these categories. This hierarchical structure enhances clarity and organization, making it easier to track and analyze financial data. For example, a parent account such as Cost of Goods Sold (COGS) can include child accounts, including “Cost of Labor,” “Equipment Rental (Job Costed),” and “Supplies & Materials.” This setup allows business owners to see a summary of their overall COGS at a glance, while also drilling down into specific cost components when needed. Similarly, parent accounts for income can have child accounts for different types of services, providing a detailed view of revenue streams.
The sample CoA will give you a solid foundation to analyze your client’s business at a glance and highlight your expertise in the field.
Construction and Contractors
Provided by Josh Standley, EA, ABA, DKK Accounting, Inc.
This template is designed to help contractors maintain a well-organized CoA that is specifically structured for the construction industry. It categorizes income and expenses into clear sections such as labor, materials, and subcontracted work, enabling a straightforward comparison between income and related costs. This setup is particularly useful for tracking KPIs, including labor income vs. labor expenses or materials income vs. materials expenses. By aligning financial tracking with the operational needs of construction projects, this CoA allows contractors to gain insights into their financial performance, identify areas of slippage, and make data-driven decisions to improve profitability.
In addition to supporting detailed job costing, the CoA provides a high-level overview of the company as a whole. By distinguishing direct job-related expenses from overhead costs, it offers a comprehensive view of the cost structure, helping contractors and their accountants identify areas that may require adjustments. The template strikes a balance between the granularity needed for accurate cost tracking and the clarity required for effective financial reporting. This makes it an invaluable tool, not only for day-to-day operations, but also for strategic financial analysis, ensuring that both the micro- and macro-financial aspects of the business are well managed.
Financial Services
Provided by Marie Greene, Connected Accounting LLC
Financial firms, such as investment advisors, banks, and insurance companies, handle diverse revenue streams, including management fees, commissions, and interest income, that necessitate distinct revenue accounts for precise tracking. These companies also incur specialized expenses related to compliance, regulatory fees, and professional services that must be categorized accurately to ensure regulatory adherence and cost management.
By customizing the CoA, financial firms can segregate client-specific accounts, track assets under management, and monitor investment performance to provide a detailed financial overview and enhance decision-making capabilities.
This tailored approach also facilitates the generation of industry-specific financial reports aiding in strategic planning and ensuring transparency for stakeholders. Ultimately, a customized CoA enhances operational efficiency, ensures compliance, and supports the unique financial reporting needs of companies within the financial industry.
Hospitality
Provided by Nicole Davis, CPA, MBA, Butler-Davis Tax & Accounting LLC
The Uniform System of Accounts for the Lodging Industry (USALI) was created to bring consistency to financial reporting across the hospitality industry, encompassing hotels, restaurants, resorts, and various other accommodation and service-based establishments. Before its introduction, hotels had different ways of recording revenues and expenses, making it impossible to accurately compare performance. USALI fixed that by offering a standardized chart of accounts, ensuring that every hotel, no matter its size or location, could categorize transactions the same way. This allows managers and investors to benchmark results and make better decisions based on reliable, comparable data.
One of the biggest advantages of USALI is that it enhances comparability and transparency. Hotels, whether part of a global chain or independently owned, can consistently track key metrics such as RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate). This uniformity helps managers control costs, optimize revenue, and pinpoint best practices across their properties. For stakeholders and investors, the confidence in accurate, standardized reporting makes all the difference when it comes to decision-making and evaluating a hotel’s profitability.
USALI’s structured approach simplifies the accounting process and helps streamline operations. By organizing financial information under key sections such as room revenue, food and beverage revenue, and operating expenses, hotels gain a comprehensive view of their financial health. The consistency provided by USALI isn’t just about better reporting; it’s crucial for making smarter, faster decisions that lead to healthier hotel operations.
Law Firms
Provided by Lynda Artesani, The Proper Trust
Attorneys and law firm clients have unique accounting needs that require specialized knowledge and attention to detail. This includes understanding legal accounting practices such as trust accounting and client billing. Upholding client confidentiality and maintaining professionalism are crucial qualities in this industry.
In addition, the stability of the legal profession guarantees a consistent client base and reliable income for accountants and bookkeepers, making it an appealing opportunity for those seeking long-term professional relationships and a fulfilling career. By embracing the challenges and intricacies of this niche, accountants and bookkeepers can become indispensable assets to attorneys and their firms by fostering enduring professional connections.
Nonprofit Organizations
Provided by Megan Genest Tarnow, DaisyBee Consulting
The CoA forms the backbone of a nonprofit’s financial system, but it is not the only tool nonprofits need. Accounts are “natural categories,” and should be understandable to anyone coming into your organization. Think of them as nouns, with other fields in QuickBooks serving as the adjectives that provide more detail.
Luckily, QuickBooks Online is not just a general ledger; it is a multidimensional database that gives us additional views of our data. We can track different levels of membership in the Product/Service list, for example, and the Class field is ideal for tracking “function” that include programs, as well as management, general, and fundraising expenses.
The accounts in the sample chart are aligned with the way nonprofits need to report on Form 990, Return of Organization, Exempt From Income Tax. I recommend you add account numbers to order the account groups in a way that is most meaningful for your client’s organization. You’ll notice a whole section of income accounts for Special (Fundraising) Events, which allows you to easily answer the question “How did we do on the event?” It also provides clean data at tax time.
We’ve also planned for donations with donor restrictions, which is one of the trickiest parts of nonprofit accounting. In this chart, the initial recognition of a new restricted grant is coded to an Other Revenue account. Releases during the fiscal year debit this account and credit the natural income category, typically Corporate & Foundation Grants. This aligns with a common policy that restricted donations received and released in the same fiscal year are treated as unrestricted. Releases in subsequent years debit the Prior Year Grants, Released from Restriction Other Revenue-type account, and credit the Release from Restriction of Prior Year Grants Revenue-type account. Everything “above the line” rolls into Net Revenue and functions as the organization’s operating activity for the year. This allows for clean, consistent tracking across fiscal years.
Download a CoA for nonprofit organizations and a CoA that includes income and expenses only
Plumbing, Electrical, and HVAC
Provided by Tonya Schulte, The Profit Constructors
Having a well-structured CoA is crucial for maintaining clear and organized financial records, especially for trade professions such as plumbing, electrical, and HVAC companies that often juggle various projects, billing methods, and reporting requirements.
Trades businesses operate in residential and commercial sectors, each with its own set of challenges and requirements. For example, commercial projects may require detailed American Institute of Architect billing and Work-In-Progress (WIP) reporting, while trade professionals often deal with numerous smaller jobs, each necessitating precise tracking of expenses, income, and profitability.
One of the standout solutions for trades businesses is Knowify, designed to meet the unique needs of trades with features that simplify project management and financial tracking.
A well-organized CoA tailored for trades can significantly improve financial reporting and analysis. This sample was tailored by our team to match perfectly with Knowify to enable a seamless reconciliation process that ensures the two-way sync between Knowify and QuickBooks Online is working properly.
The sample CoA includes accounts that cover COGS tailored for Knowify, as well as proper revenue recognition accounts, including Billings in Excess of Costs (BIE), Costs in Excess of Billings (CIE), and Current Percent Completion for WIP reporting. It also includes retention accounts for tracking retention receivable and retention payable.
Editor’s note: Got a Chart of Accounts for a specific industry you would like to share with other accountants and bookkeepers? Send Scott Cytron an email letting him know and he’ll follow up with you.
