Name of Account (Category)

Examples

Services

Money received from customers for services provided in the past or services that will be provided within 30 days

Name of Account (Category)

Examples

Advertising & Marketing

Google ads, FB ads, domain registration fees, hosting fees, letterhead, business cards, t-shirts with logo for giveaway, promotional products

Bank Charges & Fees

Monthly bank service fees, NSF fees, wire fees, overdraft fees, annual credit card fees, small "testing" deposits from gusto or banks

Commissions Expense

Commissions paid

Contractors

Money paid to individuals for their services (except for W2 employees)

Dues & Memberships

Membership dues for professional organizations

Education & Training

Conferences, continuing education (to retain licensing), additional classes, books, corporate education, business coaches

Employee Reimbursement

Home office mixed-use expenses for accountable plan expenses. Travel and Phone/Internet will be reported separately.

Note: This article on auto expenses breaks down what's considered personal vs. business

Employer Retirement Contribution

Contributions paid from the company checking account for employer retirement contributions (ex. employer portion of Solo 401k, SEP, etc.)

Equipment Purchased <$2,500

Computers, laptops, webcams, printers, office desk, office chairs, office décor

Insurance

General liability insurance, business insurance (not life, disability, or health insurance)

Interest Expense

Credit card interest, interest paid on business loans or lines of credit taken out in the name of the business

Job Supplies

Supplies & materials

Legal & Professional Services

Collective fees, attorney fees, CPA fees, PEO fees (not including S-corp owner wages which must be in Gusto)

Meals (50%)

Business meals with clients, meals with employees and/or Contractors*, meals while traveling for business or conferences, office snacks**, entertainment related meals***

*employees other than yourself & if less than 50% of staff are present

**Does not apply to S-corp owner if the only employee

***Must be charged separately from other entertainment costs

Meals (100%)

Meals with Employees and/or Contractors*, food for company holiday parties, food & beverages given free to the public

*employees other than yourself & if more than 50% of staff are present

Merchant Processing Fees

Fees deducted when accepting credit card or ACH payments from customers

Office Expenses & Software

General office supplies (paper, pens, binder clips, etc.), software purchases (Adobe, Google suite, Apple fees, if applicable, other subscriptions)

Payroll - Benefits

Gusto only processed fringe benefits

Payroll - Employer Taxes

Gusto only processed employer payroll taxes

Payroll - Gross Wages

Gusto only processed wages

Payroll - Health Insurance

Gusto only processed medical, dental, and vision premiums

Rent & Lease (100% business use)

Non-home office space, storage units, rented or leased equipment

Repairs & Maintenance

Computer repairs, non-home office repairs

Taxes & Licenses

LLC fees, business fees, state corporation taxes

Note: this doesn't include quarterly tax estimates (see Shareholder Distributions)

Travel

Hotels, car rental, taxi fees, airline fees, accountable plan/reimbursement mileage

Utilities (100% business use)

Utilities paid for a separate non-home office space, accountable plan/reimbursement phone & internet expense

Name of Account (Category)

Examples

Interest Income

Interest earned from business savings/money-market accounts

Non-Taxable Income

Forgiven COVID loans (i.e. PPP loans) or grants

Cash Back Rewards

Rewards on business credit cards

Charitable Contributions (100% business)

Charitable donation made from business account in the business name

Meals & Entertainment (0%)

Meals (0%): Meals, groceries, & snacks for yourself or family, meal expenses incurred for spouses, dependents, or other individuals who want to tag along on a business trip

Entertainment (0%): Sporting events, golfing, comedy shows

Client Gifts

For tax purposes: The company can only deduct $25 per person for gifts given during the tax year

Ask Member

Unknown transaction(s) that Collective needs guidance on how best to categorize or more detail on (ex. customer name for deposit or if charge to Target is a business or personal expense)

Name of Account (Category)

Examples

Checking

Chase, Wells Fargo, etc.

Savings

Chase, Wells Fargo, etc.

Fixed Assets

Equipment or furniture >$2,500 *Please supply a receipt for these transactions

Name of Account (Category)

Examples

Credit Card

Chase, Capital One, AMEX

Payroll Liabilities

Employee benefit deferrals to be paid (ex. s-corp owner health insurance premiums) processed through Gusto

Retirement Plan Payable

Employee and employer retirement deferrals (Solo 401K, SEP, etc.) to be paid to the retirement account financial institution

Name of Account (Category)

Examples

Capital Stock

The initial contribution made to the company transferred from the member's personal checking account to the business checking account (as stated in the LLC operating agreement)

Retained Earnings

The accumulated earnings of the company from prior years

Shareholder Contribution

Money transferred to business from personal account (except for capital stock)

Shareholder Distribution

Money transferred to personal account from business (except for payroll, reimbursements), quarterly tax estimates, personal expenses that occurred in a business account (i.e. paying a personal credit card from the business account or paying a family meal)