GL Codes for School

Sharlene

Hello, I have a friend who has a private school and wants to know the best way to code everything. What would things like books, texts, games, toys, sporting equipment come under? We have a Printing and Stationery Code which is fine and Materials & Supplies. There is also a consumables, what would we use consumables for? Maybe crayons, paper, paints etc?

JordanD

Hey @Sharlene! I'm afraid that this question is slightly out of our wheelhouse. While we like to think we are the experts at using Wave, there are some nuanced parts of accounting that we would recommend reaching out to an accountant for. This seems like it would be one of those, mainly because I wouldn't want to mislead your friend! In saying that, we have plenty of accountants in the forum who may have a better idea that I would.

@MBlair @AussieBookkeeper @Paul_davis @NFayyaz @CSLIN88 Are any of you able to chime in here?

MBlair

Hello @Sharlene ... ... I am resubmitting because I responded and do not know what happened to the post ...
Others please chime in if you suggest a different way or could offer additional insight ... @AussieBookkeeper @Paul_davis @NFayyaz @CSLIN88

Take a look at the article http://www.montessori-namta.org/Chart-of-Accounts

You do not have to form this the same way; however, let this be a guide how to set up your accounts. Also speak with other wave accountants or your local accountants in the area... I'm not to familiar with education set-ups, but again all treatment is the same regarding assets, revenues, liabilities and stock holders equity, and expenses ..

So here is what I would do if this was my school that I was creating chart of accounts for...

Expenses (typical your software will create the numbering for you)
consumables (sub account under expenses)
- supplies ( this will be a category under consumables)
- crayons- ( this will be a sub-category under consumables supplies)
- paint- ( this will be a sub-category under consumables supplies)
- printing paper (this will be a sub-category under consumables supplies)
- batteries ( this will be a category under consumables)
- envelopes (this will be a category under consumables)

       Utilities (sub account under expenses)
                 -  light (sub under utilities)
                 -   gas -(sub under utilities)
                   -  internet (sub under utilities)
                   -  phone (sub under utilities)

            Computer ( sub account under expense)
                  - software 
                  - license / fee
                 - online creative suite subscriptions

      Asset  (typical your software will create the numbering for you)
           classroom (sub account under asset)
                  - books
                   - desk
                  - computers

        Revenue (typical your software will create the numbering for you)
              - student fees (sub under revenue) 
              - tuition cost  ( sub under revenue)

These can get complex depending on how detailed you want to be with your chart of accounts. I suggest as clean as possible for tracking and reporting, but you do not have to start off as complex, but find a system that works for you. Some organizations such as non-profits and educational entities use fund accounting because they operate from budgets and its easy to classify and segment all funds... but again have your friend find what works best to manage your organization chart of account ...

Paul_davis

Hi @Sharlene

I agree with @MBlair above. Also depending what country you are in other charts of accounts may be available or more appropriate. I am based in the uk and on the uk government website there is a suggested chart of accounts that details accounts and gl code and give descriptions.

I would also suggest looking on a government website relevant to you. This may help or otherwise searching for "chart of account for private schools" and include your area/country.

Overall the GL codes used can be different from the official suggestions the important thing is to make sure they are in the right sections. (E.g operating expenses or materials and supplies)

I hope this helps

Paul