Chart of Accounts for Integrative Health Professionals
Why do Integrative Health Professionals need a Chart of Accounts?
As an integrative health professional, it is imperative that you know how the health of your business is doing at all times. The categories on the chart of accounts feed directly into the financial statements, such as the profit and loss, as well as the balance sheet. A well-developed chart of accounts ensures that your financial reports are not only accurate but easy for you to read and understand. Your financial reports will provide you with the necessary information to make informed business decisions today, and in the future.
What is a Chart of Accounts?
The chart of accounts a system for categorizing all of a company’s financial accounts. A chart of accounts is usually divided into five categories: assets, liabilities, equity, income, and expenses.
How should Integrative Health Professionals organize their chart of accounts?
The good news is that accounting software, such as QuickBooks, will provide you with a basic chart of accounts that you can edit to fit the needs of your business. Keep your chart of accounts as simple and only include accounts that you need to meet reporting requirements. For integrative health professionals, below is a simple, yet inclusive, template to follow when creating your chart of accounts. NOTE: Account numbers are optional.
Assets
Asset accounts include anything that the business owns that has value, like a building, land, equipment, vehicles, and inventory.
1010 Checking
1020 Savings
1030 Accounts Receivable
1040 Inventory
1050 Property
1060 Equipment
Liabilities
Liabilities accounts include loans, mortgages, payroll taxes due, and any bills that the business has not paid.
2010 Accounts Payable
2020 Sales Tax Payable
2030 Payroll Tax Payable
2040 Mortgage Loan
2050 Other Loans
Equity
3010 Owner’s Contributions
3020 Retained Earnings
Income
4010 Professional Fees
4020 Retail Sales
4030 Discounts
Cost of Goods Sold
5010 Medical Supplies
5020 Lab Expense
5030 Retail Expenses (supplements and products for resale)
5095 Inventory Adjustment
Expenses
6001 Advertising & Marketing
6005 Bank Service charges
6010 Insurance
6011 Property Insurance
6012 Liability Insurance
6015 Legal & Professional Expenses
6016 Legal Fees
6017 Accounting Fees
6018 Legal & Professional – Other
6020 Maintenance & Repair
6025 Office Supplies
6030 Rent Expense
6035 Meals and Entertainment
6040 Dues and Subscriptions
6045 Education & Training
6050 Reference Materials
6055 Business Fees & Permits
6060 Payroll Expenses
6061 Salaries & Wages – Staff
6062 Payroll Taxes
6063 Workers Comp. Ins
6064 SUTA Expense
6065 Credit Card Merchant Fees
6070 Postage & Freight
6075 Telephone
6080 Utilities
6085 Uniforms & Laundry
Once you have developed your chart of accounts, take the time to review it as your business grows and changes.