How do I code invoices to the right accounts without an accountant?
By Tim White · How-to · Last updated
Keep a short chart of accounts, write down which vendors go to which account, and code each invoice the day it arrives. Split an invoice across accounts only when its lines belong in different places. Have your accountant review the setup once a year rather than every bill.
1. Keep the chart of accounts short
Twenty accounts you can tell apart beat sixty you can't. If 'Software', 'Subscriptions' and 'IT' all exist, merge them. Consistency matters more than detail in a small business.
2. Write a vendor list
One page: vendor, usual account, notes. 'Verizon: 6250 Phone. Grainger: 5200 Job Materials unless it's for the office.' It answers most coding questions in seconds and lets someone else cover for you.
3. Code on arrival
Code while you still know what the charge was for. Coding a month later from memory is where most guesses creep in.
4. Split mixed invoices by line
A supply run that's part office stock and part job materials goes to two accounts. InvoiceJet captures line items, so you're splitting from real lines rather than guessing at a total. Tag invoices by client or job if you report that way.
Common questions
When should I ask an accountant?
For anything that might be an asset rather than an expense (equipment, a vehicle, a large software license) and once a year to review your chart of accounts.
Sources
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