[GNC] Setting up accounts for account number order

[Michael DeBusk]

On Mon, Jan 18, 2021 at 11:03 PM John G Sullivan <sullij_27615 at att.net>
wrote:

> 1000    assest
> 2000    liabilities
> 3000    equity
> 4000    income
> 5000    expense

If it matters to you at all, it's standard (or so I was taught in the
mid-1980s) to number them as follows:

1000-1999 Assets
2000-2999 Liabilities
3000-3999 Equity
4000-4999 Income
5000-5999 Cost of Goods Sold
6000-6999 Expenses
7000-7999 Other

I don't remember why goods bought for sale are tracked differently from
assets. I believe it was for tax purposes. And again, this is only of it
matters to you. If you never buy anything with the purpose of reselling it
in mind, If it were I, I'd just skip the 5000 series altogether.

Another thing I'll suggest is to not give your existing accounts sequential
numbers if you're naming them alphabetically. Put maybe ten between them.
That way, if you want to add an account later, you've got room to add it in
alphabetical order.

https://strategiccfo.com/standard-chart-of-accounts/

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