Chart of Accounts and Coding of ChecksJul 26, 2021
We use a standard chart of accounts that can be modified to fit your individual needs.
If you are using a manual bookkeeping system, we will have you change to use duplicate checks. Duplicate checks come three to a page. Each month you will send us the carbon copies of the checks you have written during the month and keep the original register stub in your checkbook. You will also need to write the general ledger account code in the box next to the date. If the check goes to more than one account, you should use the code boxes in the lower left corner of the check. If you are not sure what account code to use, write a description on the check stub so that we can code the check for you.
If you are using QuickBooks or another accounting software system, we will provide a chart of accounts for you to use with your software. You will need to enter a general ledger account code in the stub area of the computerized check. There is a drop down box with the general ledger codes that you can click on or you can just type in the code. A memo area can be used for typing in descriptions for those checks that you are not sure how to code. If you are unsure about how to code a check, please put a detailed description in the memo area and code the check to 680-miscellaneous expense.
Example 1 – Single Expense
This is an example of a check coded to a single general ledger expense account, 612 Telephone:
Write the account code in the code box next to the date.
Example 2 – Split Check
A split check is a check coded to more than one general ledger account. This is an example of a split check coded to two general ledger account codes:
$1,000 to account 504 Purchases, and $250 to account 658 Freight.
- Draw a line from the code box next to the date to the multiple code boxes in the lower left corner of the check.
- Write in the various general ledger account codes.
- Total the amounts in the code box. They should equal the amount of the check.
If you want to improve your business situation, get assistance now. Schedule your free consultation today or give us a call at (218) 491-4002. We're here to help!
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