Painting Contracting Business Chart of Accounts Template

A painting contracting business typically involves services such as interior and exterior painting, trim and baseboard painting, door painting, ceiling painting, and potentially related services like wallpapering. As such, their chart of accounts might look as follows:

Assets

Current Assets:

1. Cash: Money available for immediate use.

2. Accounts Receivable: Payments owed by clients for completed painting jobs.

3. Inventory: Stocks of paints, primers, brushes, rollers, drop cloths, painter’s tape, and other painting supplies.

4. Prepaid Expenses: Payments made in advance, like insurance premiums or rental fees for storage units.

5. Supplies: Miscellaneous office and operational supplies.

Fixed Assets:

1. Vehicles: Vans or trucks used for transportation.

2. Equipment: Ladders, sprayers, power washers, scaffolds, etc.

3. Buildings/Property: If the business owns office space or storage units.

4. Accumulated Depreciation: Reflecting the reduction in value of assets over time.

Liabilities

Current Liabilities:

1. Accounts Payable: Money owed to suppliers or vendors.

2. Wages Payable: Outstanding salary or wages.

3. Short-term Loans: Any borrowing to be repaid within a year.

4. Taxes Payable: Amount set aside for tax obligations.

Long-Term Liabilities:

1. Notes Payable: Long-term loans or IOUs.

2. Mortgage Payable: If the business has property loans.

Equity

1. Owner's Capital: Initial and additional investments made by the owner.

2. Retained Earnings: Profits retained for reinvestment.

3. Drawings/Owner's Draws: Money drawn out by the owner for personal use.

Income

1. Sales Revenue: Earnings from painting services.

2. Service Revenue: Income from related services like wallpapering.

3. Discounts Given: Reductions provided to customers.

Expenses

Cost of Goods Sold (COGS):

1. Material Costs: Expenses for paints, primers, and other supplies.

2. Labor Costs: Payments to painters or subcontractors.

Operating Expenses:

1. Rent or Lease: Payment for any rented/leased space.

2. Utilities: Business utility expenses.

3. Salaries & Wages: Administrative payroll expenses.

4. Advertising & Marketing: Promotional costs.

5. Insurance: Business insurance premiums.

6. Equipment Maintenance and Rental: Maintenance or rental of specialized equipment.

7. Fuel and Vehicle Maintenance: Expenses related to company vehicles.

8. Training: Costs for training programs or certifications.

9. Licenses & Permits: Regulatory and licensing fees.

Other Expenses:

1. Interest Expense: Interest payments on borrowed funds.

2. Depreciation Expense: Allocating the cost of assets over their usable lifespan.

This chart of accounts is a foundational framework for painting contractors to keep their financials in order. It ensures clarity, transparency, and systematic bookkeeping, making financial analysis and tax filing processes simpler. Adjustments might be required based on specific business needs, scale, and the local economic environment.