The on-the-go lifestyle of landscaping companies can make it hard to find time to sit down with QuickBooks and setup a chart of accounts.
However, not setting up your accounts correctly can cost you a lot of time and money in the long run. Let us give you a few pointers on how to set up accurate accounts in no time at all.
First and foremost, we’ve already created a free PDF with a QuickBooks chart of accounts for lawn care and landscaping. All you have to do is fill out the form, and we’ll email you your brand new chart of accounts.
Landscapers deal mostly with lawn care and with selling and installing things like shrubbery, trees, flowers, bushes, and many other types of plants. That being said, landscaping companies should set up their income accounts according to the kind of services they offer. If the company only deals with lawn mowing and lawn care, then there should only be one account for lawn services. If the company also installs plants, then consider having a separate income account for installation services.
If you would like QuickBooks to have more detailed information about from where the money in your income accounts is coming and where it is going, then you can create items for each individual job.
Landscaping companies should also use cost of goods sold accounts for the various expenses that come with accepting a job. For example, if your company sells plant installation, then create a cost of goods sold account for the cost of the plants. Another common cost of goods sold account is a worker’s compensation account.
Expense accounts are very important to landscaping business because of the high costs that they incur with machinery. Always have an expense account for large machinery and the tools that you use to do landscaping. Have another account for equipment rental as well. Finally, make sure to have a depreciation expense account to write up the depreciation value of your machinery.
Accounting can be a lot, but that’s what we’re here for! If you have any questions about accounting, do not hesitate to reach out to our team at Fast Trac Consulting!