When starting your own retail store or online storefront, it is important to know how to use a program like QuickBooks to set up your chart of accounts. Setting up your chart of accounts properly will allow you to track both where your revenue is coming from and where you are spending the most money.
A retail store is a business that sells products. Retail stores are everywhere, they can be clothing stores, grocery stores, sporting goods stores, hardware stores, and any other store that sells just products. Thanks to the internet, retail stores can now exist entirely online, but they still follow the same premise.
Setting up the income accounts for a retail store is easy. You only need one income account titled Product Sales. If your store offers discounts, then you should have a sales discount income account as well.
Most retail stores will have rent, utilities, insurance, and computer expenses. However, if you run an online store, you may not have these expenses. You may instead only have expenses such as website fees, online advertising expenses, and phone expenses. What expense accounts you have depends on how your run your business. Think about what you spend the most money on, and create your expense accounts accordingly.
Where Can I Find More QuickBooks Help?
To learn about a chart of accounts for another industry, try our post on industry specific charts of accounts.
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