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February 11, 2024
Question

Help categorizing bank transactions?

  • February 11, 2024
  • 2 replies
  • 0 views

Hello,

 

I could really use some help categorizing purchases for my small retail store. For reference we rent and do not own. Some of the items I'm trying to figure out the best way to categorize:

- Store retail shelving

- Interior store sign & a-frame sign

- Garden tools and planters

- Paint

- Hardware like brackets, screws, weatherstripping

- Cleaning supplies

- Electrical - outlets, wiring, etc

- Millwork

- Retail display materials like wooden jewelry holders, acrylic stands, etc.

 

Thanks in advance!

2 replies

February 13, 2024

Sure, here's how you could categorize those purchases for your small retail store:

  1. Store Fixtures & Shelving: Categorize these purchases under "Store Equipment" or "Store Fixtures."
  2. Interior Store Sign & A-Frame Sign: Put these under "Advertising & Marketing" or "Store Signage."
  3. Garden Tools and Planters: Categorize these under "Gardening Supplies" or "Outdoor Equipment."
  4. Paint: This could go under "Store Supplies" or "Maintenance & Repair."
  5. Hardware like Brackets, Screws, Weatherstripping: Place these under "Hardware & Maintenance."
  6. Cleaning Supplies: Categorize these under "Janitorial Supplies" or "Cleaning & Maintenance."
  7. Electrical - Outlets, Wiring, etc.: Put these under "Electrical Supplies" or "Maintenance & Repair."
  8. Millwork: Categorize these under "Construction Materials" or "Custom Work."
  9. Retail Display Materials like Wooden Jewelry Holders, Acrylic Stands, etc.: Place these under "Visual Merchandising" or "Store Decor."

These categories should help you organize your expenses more efficiently and track where your money is going.

Rainflurry
February 13, 2024

@kfgshop 

 

Are you making leasehold improvements to your space?  If so, categorize those as fixed assets.  Create a fixed asset account called 'Leasehold Improvements' and assign that to the transactions.  The electrical, paint, and millwork sound like possible leasehold improvements.  The displays should be put under a fixed asset account called 'Furniture, Fixtures & Equipment'.  Make notes on the transactions so your CPA/tax accountant can determine the appropriate tax handling.