Accounting for a Boat Builder

[Sam III]

Does anyone out there have any advice on a 'chart of accounts' for a US production boat builder?

I have started the business and now need to accomplish the accounting and thought if some one could share a chart of accounts it would give me a great leg up.

Thanks.

Sam

[masalai]

Every day list what you bought, the labour and services you were billed and every other expense you had that day,,, When you launch you are about half way there.... :D:D:D

[Ike]

Accounting for a boat builder is no different than accounting for anyone who makes stuff. Look here, about half way down the page is a section on accounting (there is a short paragraph at the top of the page as well) http://newboatbuilders.com/pages/business.html.

The major thing is to track your costs. Many people who have startup businesses do not track all of their costs. They get sloppy and at the end of the year can't figure out why they lost money.

Make sure you clearly separate you own expenses (your lunch, gas to get to work, etc) from business expenses. Business expense are anything you spend to contribute to your business. Everything from pecils to parts.

Do not use personal stuff for your business. WHY? because it becomes very difficult to separate non-business use from business use. If you want an example read the IRSs info on home offices. Essentially they say, the home office has to be used ONLY for business. http://www.irs.gov/newsroom/article/0,,id=108138,00.html

Keep track of income from your business. Put it in a separate book or spreadsheet. Eventually you will have to create a profit and loss statement but it's easier if you separate income and expenses.

[Sam III]

Thanks for the input. I'm an accountant by education and have been involved in my own business's for over 30 years.

I started a boat building company and was looking for a chart of accounts that might be more compatible to operating the company with other than a schedule c or 1120S breakdown.

I'll work through it.

Thanks

Sam

[Ike]

Well, sorry. I guess you know what you are doing. My stuff is for novices.

[Sam III]

Peter,

No need to be sorry, I like your websites. Lots of good information. Very well written and presented.

Thanks for the comments.

[blackfeather]

Sam,
I'll export mine into excel and email it to you.
Email me at info@blackfeatherboats.com and I'll send it back.
Gregor

[mydauphin]

I hope you don't expect to make a profit...

[masalai]

I thought this was a bit of a joke question, I hate accounting, money in must be more than money out to make a profit - KISS applies...

[mcollins07]

Sam,
I am a business process managment (BPM) consultant for many small and some very large companies. I assume you will be using project based cost accounting where the work break down structure (wbs) provides the link to an effective accounting system. The simplified concept is to create a few scenarios of a typical projects. Then analyze these scenarios to find the expense types (for tax perspectives) and the earned value types from market prespectives. So for example chart of accounts, you can get several from various project based construction companies, such as home buildiers. Then apply these to your processes and methods of operations. Making sure the categories are general enough to allow you flexibility in your processes, yet specfic enough to track your expenses and earned value.

[Sam III]

I thought this was a bit of a joke question, I hate accounting, money in must be more than money out to make a profit - KISS applies...

Not a joke question.

On the basis of building multiple boats I would like to know where my area's of cost are at so I can make sure all make a profit. Not have high profit items cover the loss in other area's.

Thanks

Sam

[masalai]

Maximising the turnover of high profit lines and using low margin bargains as a "door-buster" is marketing and you will see evidence of this at all supermarket operations - - staples are displayed at the back of the store and high margin stuff like lollies and bottled tap water near the checkout lines.... A critical consideration in retaining turnover and overall profitability as the salesroom must also "show a return" for the cost of the workshop operation (where the customers may not go because of "Occupational Health & Safety" reasons)

[mydauphin]

It is easier to build boats than to make a sucessful boat brand name.

I remember around my area, (South Florida) dozens of a new boat manufacuturer come and go every year. Building a sucessful brand costs millions. Just a comment for all the dreamers, build it for fun. Return on Investment, profit, building a profitable brand... that is another story.

[harlemriverman]

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