Default COA Numbers for IT Consulting

Thanks for checking in with us, Sojourner.

Yes, the account numbers feature is off by default and we have to turn it on. Then, manually assign the add the account numbers. If you’re looking for recommendations for an industry-standard list of COA numbers that exist for IT consultancies, these account number ranges might help. These are based on account types and follow generally accepted accounting principles (GAAP):

 Number range  Account type

 10000-19999     Assets

 20000-29999     Liabilities

 30000-39999     Equity

 40000-49999     Income or Revenue

 50000-59999     Job Costs or Cost of Goods Sold

 60000-69999     Expenses or Overhead Costs

 70000-79999    Other Income

 80000-89999    Other Expense

You can also consult your accountant for an industry-standard list for IT consultancies and manually add them. Here's how: 

1. Go to the Accounting menu and select Chart of Accounts.
2. Select Batch edit in the Action column.
3. Add account numbers in the Number column.
4. Once you’re done, press Save.

Now you can spend less time looking for specific accounts in the Chart of Accounts or when adding transactions. Quickly find accounts using the numbers you assigned to them. To learn more about this one, see the Use account numbers in your chart of accounts article.

Feel free to visit our Banking page for more insight about managing your bank feeds and reconciling accounts. 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. Have a great day. 

After nearly 50 years of bookkeeping I still have trouble with the perceived need for COA numbering, especially when ALL versions of Quickbooks can find accounts by name. Or number. On a daily basis we have to deal with supporting software that can only find accounts by number (and also need full dates entered, 6 digits and 2 slashes!!!!)

Rant aside, since you feel the need to use account numbers, know this...there are only guides for ranges as illustrated by my colleague @RCV  and there also is no specific number of digits. You can use as little as 3 or I believe the software may support up to 6. You can also nest numbers along with sub accounts. 

Now a comment on your entity structure. And maybe you know this already. As a LLC taxed as S-corp you must pay yourself "reasonable" in the eyes of the IRS, W2 payroll wages before taking any untamed distributions. Starting out you might end up only being able to take taxable wages 

Example, as an IT consultant the going wageight be $75k per year, but you end up first full year at only $50k profit before wages. The way I see it you could only take wages. If you net $100k, then wages could be 75 and non taxed distribution would be 25.  This is all just food for thought as you get up and running