Whether you’re a sole proprietor or have been in business for years, your sole proprietorship chart of accounts is the most crucial component of your business.

Setting up a chart of accounts for the sole proprietor from scratch can be difficult. The good news is that creating a chart of accounts with CheckMark MultiLedger is simple and easy.

When you install CheckMark MultiLedger, a folder called “COAs” is installed in the “MLedger” folder. This folder contains several charts of accounts that you can use for your small business. The sole proprietorship of accounts is available in the “Sample COAs” folder on your local disk.

You can adapt your current chart of accounts, create a new one, or copy and then modify an existing chart of accounts from one of the MultiLedger sample companies or the Sample COAs folder.

Here is the chart of accounts MultiLedger creates for Sole Proprietor:

Sole Proprietorship Chart of Accounts
1010	Checking	4200	Miscellaneous income
1020	Payroll checking	5000	Cost of sales
1030	Cash register drawer	5100	Freight
1040	Petty cash	5200	Purchase discounts
1100	Accounts receivable	6000	Advertising/marketing
1200	Prepaid expenses	6100	Automobile
1400	Inventory	6200	Bad debts
1600	Computer equipment	6300	Bank charges
1620	Office furniture and equipment	6400	Contributions
1640	Vehicles	6500	Commissions and fees
1660	Leasehold improvements	6600	Depletion
1700	Accum. depr.- computer equipment	6700	Depreciation
1720	Accum. depr.- office furniture	6800	Dues and memberships
1740	Accum. depr.- vehicles	6900	Employee benefits
1760	Accum. depr.- leaseholdimprov	7000	Insurance
2100	Accounts payable	7100	Late fees
2120	American Express	7200	Lega land professional
2140	MasterCard	7300	Maintenance and repairs
2160	Visa	7400	Miscellaneous
2200	Sales tax payable	7500	Off ice supplies
2300	FICA tax payable	7600	Payroll-wages
2320	Federal withholding tax	7700	Payroll-taxes
2340	State withholding tax	7800	Postage
2360	Federal unemployment tax	7900	Rent
2380	State unemployment tax	8000	Rent or lease equipment
2400	State disability tax	8100	Taxes and licenses
2600	Note payable	8200	Telephone
3000	Owner’s investment	8300	Travel, meals and entertainment
3100	Owner’s draw	8400	Utilities
3200	Retained earnings	9000	Interest income
4000	Sales	9500	Interest expense
4100	Returns and allowances