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This article is about “Bond investment journal entry”, you can find here a huge variety of articles about “Bond investment journal entry”:

Setting up a chart of accounts is very easy, especially when you have an easy to use accounting software program.

To complete this task all you need to do is

1. Ensure each account type is distinguished in some way

This means that assets, liabilities, owners equity, revenue and expense are distinguished in some way. A great way to do this is to start each type of account with a different number. For example assets could be 1000 numbers, liabilities be 2000 numbers, owners equity be 3000 numbers, revenue be 4000 numbers and expenses be 5000 numbers. So for example accounts receivable might be account number 1015 and accounts payable be 2020. This is just one example of how to distinguish the account types but any method to distinguish them will work.

2. Ensure accounts are numbered leaving room for new accounts

You will want to number the accounts with space to insert new accounts. This means not numbering your accounts sequentially. For example you might have two types of investments you want to separate in your system. One being stock investments, numbered 1020 and one being bond investments, numbered 1030. By numbering them in this manner it allows you space for 10 accounts between 1020 and 1030 in case you need to add an additional investment of some nature to track in your books. How much space you leave between each number really depends on your business and how likely you will be to have to add new accounts.

3. Use a logical numbering system

Use a numbering system that makes sense to you. There is no right or wrong way so choose one that you are comfortable with and that helps you organize your accounts. With an easy to use chart of accounts you can save your self a lot of time trying to find the right account number when entering your journal entries.

What also plays a big roll in how you set up a chart of accounts and how easy or hard it will be is dependent on the program or software you are using. For example with Profitworks’ Easy To Use Accounting software all you need to do is type in the account name beside the appropriate type (asset, liability, owners equity, revenue or expense), selecting a number and then typing the name of the account beside the chosen number. Setting up a chart of accounts in this program can be done in only a few minutes.

If you are looking for an easy to use, flexible, low cost accounting program check out Profitworks’ Easy To Use Accounting software. It can be found at the link below. http://www.profitworks.ca/easy-to-use-accounting-software Article Source: http://EzineArticles.com/?expert=Chris_R_Keller

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