Don't know which "type of business" to choose
I'm trying to create a business in such a way that the default chart of accounts will be most appropriate for my business, but none of the options seem to match and what's left are so general that I have no idea if the COA will be useful. This is especially difficult because I do not have prior accounting experience and cannot afford to hire an accountant.
My business is a "cottage-food operation." That means that I bake things in my home kitchen and sell them at farmers markets. I have no invoices, no purchase orders, no payroll - just debit-card purchases of ingredients, equipment and supplies and cash deposits after the markets and deposits from Square for credit/debit-card sales.
The closest business type I can find is ""General: I make or sell a PRODUCT" with a sub setting of "Other Product-based business." Given the actual nature of my business, as described above, is there any more appropriate selection for "type of business"?
Does anyone out there have a similar business (or better bookkeeping knowledge) to be able to suggest an appropriate chart of accounts?
Thanks.
Comments
It is not going to matter much which you choose. Most charts are pretty similar in terms of account names. You can always edit the name of an expense or create a new one. In your case you would just have operating expenses and not cost of goods. I have a client that runs a BBQ shack and catering. The only 2 food related expenses we have are Food Purchases and other supplies. The rest of the chart is similar to others. Rent, vehicle, office, etc