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Video of Chart of Accounts - Quickbooks Track Income vs Expenses in Quickbooks course by Mega Niche University channel, video No. 36 free certified online
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This video is a response to the question posted on our forum.
I'm a tour operator and new to accounting. A little background is in order. I live and work in the Dominican Republic, so all the tax laws, irs rules, corporation strategies, etc, do not apply here. I am learning accounting and booking to better myself and make my business more profitable. Ok, with that out of the way
I am trying to setup my chart of accounts. Lets talk about Income and Expenses. My business is very simple. Clients pay me when they want to go on tours or to provide them with transportation (such as airport to hotel shuttle service). I resell everything. I might have 20 tour operators that I resell their tours. And I have 2 transportation companies that I resell their transportation services. Simple right?
At the end of the year, I would like to be able to see where I make the most money, tours or transportation. But then I realize, that I do not make money on either of them. Not one tour operator or transportation company pays me money. The only income I receive is from the client. Then I mark up the price and resell the tour or transportation. So with that thinking, all my tour operators (vendors) are Expenses. Same with my transportation companies. And the only single source of revenue are clients (ranging from Ma and Pa, to Wedding Groups, to Company Incentive Groups).
How would I setup my chart of accounts so that I have a better picture or idea of how and where i make money? It would be nice to know that I generate 80% of my business from reselling tours and only 20% in reselling transportation. This would allow me to fine tune my business and be more efficient.
How would you recommend I setup my chart of accounts for a business like I just described?
Thanks,
Ken
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