Setting up your Accounts List

WorkingPoint comes with a predefined set of accounts, including “protected” accounts that are required by WorkingPoint. If you are on the Premium account plan, you can modify unprotected accounts or add new accounts as your business grows and changes.


Consider the following when setting up new accounts:

Account Type:

What the account is used for:

Modify:

Delete:

Add/General Notes:

Bank Account

Helps you keep track of your banking activity.

Rename the existing bank accounts to match your account names.

Delete any accounts that you do not use or do not expect to use in the future.

Create an account in WorkingPoint for each of your bank accounts so you can track deposits, withdrawals, and other transactions affecting your account balance.

Cost of Sales (COS, COGS)

Keeps track of how much it costs to sell your goods and services as they are sold.

Most businesses have some sort of COS to track. We have set up predefined accounts according to the tax document Schedule C. But you can change them.

Your account comes with predefined account called Cost of Goods Sold. This account used to track the cost of your inventory as it is sold. It is protected and cannot be modified or deleted.

Review or change the Schedule C Cost of Goods Sold Category assigned to each account for your year-end tax reporting.

Your account comes with predefined account called Cost of Goods Sold. This account used to track the cost of your inventory as it is sold. It is protected and cannot be modified or deleted.

Delete any other  accounts that you do not use or do not expect to use in the future.

Have several sources of revenue? You can create a COGS account for each revenue source/account to easily view profitability per revenue source on your Income Statement for items sold that do not track inventory.

Every time you sell an item with inventory, WorkingPoint will record/transfer the cost of the item from the protected Inventory Asset to the protected Cost of Good Sold account so you can run accurate Income Statements. This way you  can see what you really made from your sales after you take into account what it cost you to buy the goods you sold.

Even if you are a service business, there are likely cost of goods sold expenses you can claim. Talk with your financial advisor or visit the www.irs.gov to learn more about the types of COGS expenses you can claim.

Credit Card Liability

Helps you track your credit card charges, payments, and other credits.

Rename the existing account to include the card type or lender name for easy recall.

If you don't use credit cards, delete the provided account.

Have more than one credit card? Create an account in WorkingPoint for each of your credit cards. Include the card type and/or lender name for easier recall when recording credit card activity.

Equity

Tracks shareholder and owner equity including investments of capital, draws, and other investments.

See Add/General Notes

Delete any accounts that you do not use or do not expect to use in the future.

The predefined set of equity accounts are optimized for the sole proprietor. If your business entity is set up as a Partnership, LLC, S-Corp, or Corporation, you might have partners or shareholders whose equity you need to track including Stock or Dividends Paid. If this is the case for you, rename the Owner's Equity accounts with the accounts you need.

Expense

Helps you keep track of how you are spending your money on things you don't resell.

Review the predefined set of expense accounts and delete any you won't use or rename them to ones you will.

Review or change the Schedule C Expense Category assigned to each account for your year-end tax reporting.

Review the predefined set of expense accounts and delete any you won't use or rename them to ones you will.

You might be used to the envelope method of keeping track of expenses-that is, you throw your receipt into a folder and at the end of the month (or year) you tally up the damage. Think of your WorkingPoint expense accounts in a similar way. Instead of a folder for the month, you have a basket labeled Expenses and in that basket you have envelopes for each category of expenses. With WorkingPoint, you just enter the expense instead of filing it and you choose the envelope by selecting an expense account.  

Use parent and subaccounts to track categories of expenses while still keeping them grouped together. More

Fixed Asset

Helps you track big items you own that you are not likely to use up or sell in a year and that are likely to depreciate over time.

Your account comes with one fixed asset account: Equipment. Rename it or delete it to match your existing property.

Have no depreciable assets? Delete the existing Equipment and Accumulated Depreciation accounts.

When tracking your fixed assets in WorkingPoint, you can get as detailed as you would like. For example, if you want to see a separate line item on your balance sheet for each asset, create a new account for each asset you own which has value above a certain limit (for example, $500.00).

Not such a stickler? Use a separate account for each category of assets you own. For example, track all your vehicles in one account called vehicles, and all your major equipment in another account so you can track their combined value on your balance sheet. Just be sure your assets log includes the details of each asset. More

Inventory Asset

Helps you keep track of the value of the items you have on hand to sell.

Your account comes with predefined account called Inventory Asset. This account used to track the value of the inventory you keep in stock. It is protected and cannot be modified or deleted.

Your account comes with predefined account called Inventory Asset. This account is used to track the value of the inventory you keep in stock. It is protected and cannot be modified or deleted.

Create a separate account for inventory you have on hand but you don't want to track the quantity available within WorkingPoint. For example, raw materials and supplies you use to produce your finished goods. You can adjust the value using an adjusting entry on the General Journal.

Long-term Liability

Helps you keep track of debts that will take you more than one year to pay off.

Rename the existing account to include the loan type or lender name for easy recall.

If you don't have any long-term liabilities, delete the provided account.

Create a new account for each loan or debt you owe, for example, auto loans or your mortgage.

Other Asset

Helps you keep track of assets that do not fit in any other predefined asset categories.

 

 

Other assets might include loans you gave to others who are not likely to pay you back within the year, or a security deposit you put down on your storefront or warehouse you won't see again until you move out. Create a new account to keep track of each of your other assets.

Other Current Asset

Helps you keep track of things you own that will be used or sold within a year, like prepaid insurance or prepayments you made for goods you will receive soon.

 

 

Prepayments are still considered an asset (just like cash) even though the money is paid because your vendor has not completed their obligation to you. More

Create a new account to manage each prepayment (such as Prepaid Auto Insurance) or prepayment category (such as Prepaid Insurance).

Other Current Liability

Helps you track debts you owe that you expect to pay off within the year.

Your account comes with predefined account called Customer Credits. This account used to track customer overpayments. It is protected and cannot be modified or deleted.

Your account comes with predefined account called Customer Credits. This account used to track customer overpayments. It is protected and cannot be modified or deleted.

Other Current Liabilities might include the short term loan you got from a family member to get your business off the ground. It might also include money your customers gave to you on orders/services you have yet to earn/fulfill, payroll taxes, and other accrued expenses.

Create a new account to track each liability or category.

Revenue

Keeps track of the money brought in from the sale of your products and/or services.

Rename existing accounts to suit your business.

Note: Keep required default accounts. See your account Settings for specific accounts.

Review or change the Schedule C Income Category assigned to each account for your year-end tax reporting.

Delete any accounts you will not use.

Note: Keep required default accounts. See your account Settings for specific accounts.

Create an account for each category of revenue you earn or expect to earn.

Get as detailed as you would like, for example, you can create a new revenue account for each of your service types, product lines, or locations where you do business.

If you have more than one source of revenue, consider creating additional revenue accounts as subaccounts of Revenue (just like the predefined account Revenue:Product Sales) so you can track the secondary sources of income, but still have the parent account Revenue to display the total for all your revenue accounts.