This document provides an overview of sole proprietorship accounting presented by Julie Gilmer, a CPA with over 12 years of experience owning an accounting firm and manufacturing businesses. The document discusses setting up a chart of accounts, including asset, liability, equity, and class accounts. It also summarizes the basic financial reports of a balance sheet and profit and loss statement. Finally, it provides Julie's top 5 tips for sole proprietorship accounting, such as using classes instead of accounts and having fun with the accounting to fully understand your business.

1. Sole Proprietorship Accounting Made
Easy
Conroe, Texas
JULIE GILMER, CPA

2. Introduction
• Education
- MBA
- CPA
• Experience
- 12 years Owner CPA Firm
- Own 2 manufacturing businesses with International sales
- Teaching QuickBooks 17+ years
• Affiliations
- Intuit Trainers and Writers Network
- Texas Society of CPA’s
- Small Business Development Centers

3. 3 Intuit Proprietary & Confidential
Chart Of Accounts
• ASSETS – things you own ( Accounts Receivables, Inventory,
Equipment, etc)
– Current Assets – Items that will be used up within 1 year
• Prepaid Insurance
• Inventory
FIXED ASSETS – Property that will last more than 1 year and is above a
nominal cost.

4. 4 Intuit Proprietary & Confidential
Chart Of Accounts
• LIABILITIES – things you owe ( Accounts Payable, Payroll
Taxes, Sales Tax, Notes, etc)
– Current Liabilities – due within the next 12 months
• Payroll Taxes
• Sales Taxes
• Accounts Payable
• Current portion of Long-term Debt
Long-term Liabilities – Due more than 12 months from now
• Notes Payable

5. 5 Intuit Proprietary & Confidential
Chart Of Accounts
• EQUITY – your ownership interest value
– Owner’s Draw – Money used for personal purposes
Retained Earnings – Accumulation of Profits and Losses from inception
of business.

6. 6 Intuit Proprietary & Confidential

7. 7 Intuit Proprietary & Confidential
CLASSES
• Keep track of Income and Expenses by location, department,
partner, etc.
• Less complicated Chart of Accounts.
CLASSES

8. 8 Intuit Proprietary & Confidential

9. 9 Intuit Proprietary & Confidential

10. 10 Intuit Proprietary & Confidential
REPORTS
• Balance Sheet consists of Asset, Liabilities and Equity
• Profit & Loss consists of Income and Expense
FINANCIAL STATEMENTS

11. 11 Intuit Proprietary & Confidential
Julie’s Top 5 Tips
5. No need to start a new file every year.
4. Set up Chart of Accounts similar to Schedule C or E and
build upon that.
3. Learn which Accounts are the foundation for Reports
1. Income and Expenses = Profit & Loss
2. Assets, Liabilities and Equity = Balance Sheet
Top 5 Tips

12. 12 Intuit Proprietary & Confidential
Julie’s Top 5 Tips
2. Try “Classes” instead of Accounts
1. Have Fun – Don’t look at it as something you have to do,
but rather something you want to do to fully understand
your business.
Top 5 Tips