Business

I tried asking this (as a sample chart of accounts) a couple of years ago, but never got any real responses. Since then, I have started using Wave Accounting and it has been VERY easy to use.

Here are my expense categories from Wave. Much of this is from the default categories initially provided by Wave, but some are categories I have added to suit my business. A few of these don’t apply to me (e.g. Computer Hardware, since I already had the computer and my business use of it is not more than 50%)., but I have left them in the list, anyway. Having these categories definitely makes things easier when it comes to tax time. In fact, I even discovered things I didn’t realized I could deduct (e.g. Bags and labels necessary to package products for sale are considered part of the Cost of Goods Sold – something I didn’t know to deduct in my first two years).

I hope this helps at least somewhat as you get everything organized.

Operating Expense
Advertising & Promotion Advertising or other costs to promote your business. Includes business cards, web or social media promotion.
Business Liability Insurance Business Liability Insurance
Business Licenses & Permits Fees for licenses and permits your business requires to operate.
Computer – Hardware Desktop or laptop computers, mobile phones, tablets, and accessories used for your business.
Computer – Hosting Fees for web storage and access, like hosting your business website or app.
Computer – Internet Internet services for your business. Does not include data access for mobile devices.
Computer – Software Apps, software, and web or cloud services you use for business on your mobile phone or computer. Includes one-time purchases and subscriptions.
Disposable goods Parchment, paper bags, trash bags, etc. not integral to product packaging.
Equipment for market Tents, tables, etc.
Kitchenware Pans, utensils, etc.
Market Fees Fees paid to rent market space
Office Supplies Office supplies and services for your business office or space.
Repairs & Maintenance Repair and upkeep of property or equipment, as long as the repair doesn’t add value to the property. Does not include replacements or upgrades.
Sales Tax Sales tax taken out of income from items that have the sales tax included in the price.
Telephone – Land Line Land line phone services for your business.
Telephone – Wireless Mobile phone services for your business.
Training and Education ServSafe certification, etc.

Cost of Goods Sold
Product packaging Bags and labels necessary to package products for sale.
Purchases – Food & Beverage Ingredients, etc.

Payment Processing Fee
Merchant Account Fees Fees your business pays in order to accept credit card payments. Includes transaction fees, monthly subscription fees, and one-time fees for processing software or equipment.

Uncategorized Expense
Uncategorized Expense A business cost you haven’t categorized yet. Categorize it now to keep your records accurate.