GENERALLY USED ACCOUNTS
The accounts used to record business transactions may vary from business to business. On the other hand, we find the accounts below which are generally used by companies.
STATUS OF THE RESULTS
Turnover
Revenue is the sales of the business.
Selling fees
Selling fees include all costs to obtain an order or deliver a product or service to the customer. For example, advertising, shipping, representative meals and travel expenses, sales commissions, salesperson salaries.
Advertising and promotion
Expenses used to publicize a product, service, business in order to attract customers, such as spending on newspapers, radio, television, etc.
Meal and entertainment expenses
The name of the account used to record meal and entertainment expenses and entertainment to solicit or retain business, such as tickets to theaters, concerts, sports meets, or other entertainment.
Doubtful and bad debts
Amount that we estimate of a debt that we will not be able to receive payment during the year.
Insurance
The insurance account represents the cost of insurance to protect against a risk, for example regular commercial insurance premiums on all buildings, machinery and equipment.
- Home Insurance;
- liability insurance;
- salary insurance;
- Disability Insurance;
- travel insurance;
- Health Insurance;
- property insurance;
- car insurance;
- insurance on the life of directors.
Office expenses
These fees include small items such as pens, pencils, paper clips, stationery and stamps. Office expenses do not include certain items such as calculators, filing cabinets (furniture), desks and chairs. These are considered fixed assets.
Training costs
- Fees for employee training
- Congress participation fees
- Participation in conferences
Stationery
The supplies account represents the cost of items used by the business that are indirectly used in the production of goods and services. For example, a veterinarian will list expenses for medications, syringes, and other supplies, while a plumber will list the cost of cleaning supplies.
Rent
Rent incurred for property used in the business, such as the rent for the land and building where the business is located.
Maintenance and repair
Expenses to maintain the company's fixed assets in good condition.
Property taxes
Municipal and school taxes
Travelling expenses
Travel and traveling expenses for the operation of the business.
- Taxi;
- parking;
- vehicle rental;
- metro, bus tickets;
- airline tickets;
- hotel room;
Telecommunications
Include telephone and utility expenses such as gas, heating oil, water and electricity incurred to earn income.
- basic service;
- cell phone;
- residential line business part;
- long distance;
- Internet;
- Web hosting.
Delivery, transport and courier
Fees that are charged for the transportation of goods, merchandise or products by any means.
Motor vehicle expenses
Motor vehicle expenses incurred for the purpose of earning business income.
- fuel and oil
- interests
- insurance
- registration fees
- maintenance and repairs
- Parking Fee
Administration fees
Public services
Includes utility expenses such as gas, heating oil, water and electricity incurred to earn income.
- Electricity;
- Heater;
- Telecommunications
- Basic Service;
- Cell phone;
- Residential line business part;
- Long distance;
- Internet;
- Web hosting.
Meal and entertainment expenses
The name of the account used to record meal and entertainment expenses and entertainment to solicit or retain business, such as tickets to theaters, concerts, sports meets, or other entertainment.
Accounting, legal and other fees
The accounting, legal and other fees account represents the professional fees paid to firms to obtain advice, services or consultations for the proper functioning of the business.
Travelling expenses
Travel and traveling expenses for the operation of the business.
- Taxi;
- Parking;
- Vehicle rental;
- Metro, bus tickets;
- Airline tickets;
- Hotel room;
Insurance
The insurance account represents the cost of insurance to protect against a risk, for example regular commercial insurance premiums on all buildings, machinery and equipment.
- Home Insurance;
- Liability insurance;
- Salary insurance;
- Disability Insurance;
- Travel insurance;
- Health Insurance;
- Property insurance;
- Car insurance;
- Directors life insurance.
Property taxes
Municipal and school taxes
Business taxes and permits
These expenses represent the cost of permits and licenses for business activities, such as permits and annual dues paid to remain a member of a trade or professional association.
Maintenance and repair
Expenses to maintain the company's fixed assets in good condition.
Rent
Rent incurred for property used in the business, such as the rent for the land and building where the business is located.
Training costs
- Fees for employee training
- Congress participation fees
- Participation in conferences
Stationery
The supplies account represents the cost of items used by the business that are indirectly used in the production of goods and services. For example, a veterinarian will list expenses for medications, syringes, and other supplies, while a plumber will list the cost of cleaning supplies.
Office expenses
These fees include small items such as pens, pencils, paper clips, stationery and stamps. Office expenses do not include certain items such as calculators, filing cabinets (furniture), desks and chairs. These are considered fixed assets.
Management and administration fees
Management and administration fees.
Delivery, transport and courier
Fees that are charged for the transportation of goods, merchandise or products by any means.
THE BALANCE SHEET
The balance sheet includes all of the assets, liabilities and contribution of the owners when the business was founded. Moreover, it includes all the expenses incurred before being able to start the business activities, for example, incorporation fees, accounting and legal fees, etc. The opening balance sheet is used to describe the amounts that will be invested in the start-up of the business.
Current assets
Cash
Cash represents the amounts available to pay for its operations. It includes current and savings account balances at financial institutions, petty cash balances, credit card slips, bank drafts, and all amounts that are readily available. On the other hand, we must exclude sums of money that have restrictions that prevent the payment of transactions, for example investments maturing in more than one year.
Current account
- Savings account
- Current account – wages
Accounts
Accounts receivable represent receivables resulting from the sale of products or services on credit.
Provision for doubtful and bad debts
Account where the sums which will not be reimbursed by the customer or other debtor are estimated
Inventory
Inventories represent goods intended for sale
Stationery
Items used by the business that are used indirectly in the production of goods and services. For example, a veterinarian will list expenses for medications, syringes, and other supplies, while a plumber will list the cost of cleaning supplies.
Prepaid expenses
Fees that are paid before they are due are called prepaid expenses.
- Prepaid rent for a number of me
- Annual insurance premium
- Municipal and school taxes
Intangible assets
Ground
Land used for the operation of the business.
Building
Buildings, warehouse used for the operation of the business.
Office furniture
Office furniture used for the operation of the business such as desks, chairs, filing cabinets, etc.
Material & equipment
Materials & equipment used for the operation of the business such as fax machines, telephone systems. etc
Hardware
IT equipment used for the operation of the business such as computers, printers, etc.
Rolling stock
Rolling stock used for the operation of the business such as automobiles, trucks, etc.
Rental improvements
Costs for setting up a space commercially.
Intangible assets
Software
Computer application used for the operation of the business
Trademarks
Trademark is an exclusive right to use a name, symbol or design, such as the M for McDonald's.
Incorporation expenses
Company Legal Statement
Current liabilities
Overdraft
Credit facility granted by the bank to its client, the balance of which may be in debit at a given time.
Bank loan or line of credit
Loan contracted from a financial institution with a maturity of less than one year. Amount of credit granted by a financial institution which must not exceed a prescribed limit.
Accounts Payable
Debt contracted with its suppliers
Accounts payable and accrued liabilities
Debt that will only be payable later
Accrued liabilities
Accrued costs represent sums committed but not yet paid during the financial year, for example vacation payable.
Salaries and social charges
Salaries and social charges to be paid
Interest payable
Interest on loans payable
Deferred revenue
Income received in advance
Taxes payable
Federal sales tax and provincial tax payable
Long-term liabilities
Mortgage loan
Loan contracted whose assets are pledged as collateral.
Long-term debt
Debt which, in the normal course of business, is not expected to be settled within the next twelve months or the next operating cycle if the duration of the operating cycle exceeds one year.
Owner's equity
Capital - owner
Specimens
A direct debit is a cash or other withdrawal by the business owner.
Contributions
A capital contribution to the business is an investment in money or in another form by the owner in the business.