e your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your busines

A chart of accounts is defined as a list of accounts used to categorize the financial transactions of a business. But if set up with thought it can be one of your most useful tools in analyzing your business. A chart of accounts usually consists of five areas – Assets, Liabilities, Equity, Income and Expenses. Some companies segregate their transactions into the additional segments of Cost of Goods Sold, Advertising Costs, General and Administrative Expenses, Other Expenses, Other Income, and Taxes. But by designing your chart of accounts with the financial analysis of your company in mind, you will be able to see just where your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your business

your most useful tools in analyzing your business. A chart of accounts usually consists of five areas – Assets, Liabilities, Equity, Income and Expenses. Some companies segregate their transactions into the additional segments of Cost of Goods Sold, Advertising Costs, General and Administrative Expenses, Other Expenses, Other Income, and Taxes. But by designing your chart of accounts with the financial analysis of your company in mind, you will be able to see just where your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your busines

me companies segregate their transactions into the additional segments of Cost of Goods Sold, Advertising Costs, General and Administrative Expenses, Other Expenses, Other Income, and Taxes. But by designing your chart of accounts with the financial analysis of your company in mind, you will be able to see just where your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your busines

enses, Other Income, and Taxes. But by designing your chart of accounts with the financial analysis of your company in mind, you will be able to see just where your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your busines

e your profits are coming from and where your expenses need to be examined.

By setting up income accounts for each department or segment of your business you will get a view of which areas are working for you. And by breaking out your expenses, both direct and indirect, within these income areas, you will also see which areas are most profitable. For example, if you are in the business of general contracting, you might build custom homes, do remolding, rehab older buildings and incur warranty costs. Wouldn’t it help you if you knew how much income was coming in from each of the services you provide? And how much profit each of the areas was bringing into the company? If you are lumping warranty costs into general expenses then how do you know how much it is costing you?