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Production development expenses for tracking in QB

Michael Goldberg's Profile

We are trying to figure out how to best set up our chart of accounts in Quickbooks. We are an educational software training company that develops SaaS enterprise solutions in a course format. We have internal as well as 3rd party costs that we incur that will be part of the "Production Costs" of the course build and we are trying to determine the best method of setting up the chart of accounts so that we can: 1) keep track of the production costs by category and by course: for example: video, producer, editor, gaming and then also by course: nursing assistant, security guard, insurance representative, etc. 2) run a p&l for each course 3) potentially consider amortization and revenue recognition for each course. We are thinking of setting up Quickbooks chart of accounts with the Production Costs as an Expense account and then each additional sub category as a sub account, with the name of the course itself as a class. Alternatively, we have been told that we might consider doing it on the balance sheet with the course name inside of the account name, and not using the class field. Note that we will be tracking the production budget in Excel and it would be great to be able to issue purchase orders and also identify actual Quickbooks expenses as incurred to be tracked against the Excel budget. In essence, this probably closely tracks the set up for a entertainment production company. I welcome your experienced thoughts and feedback. Thanks!


Rachel Ernsdorff
Title: Accountant
Company: RBC
(Accountant, RBC) |

Few questions:
Cash or accrual based accounting?
Do you incur all expenses per course typically in the same month you derive the course revenue?

Michael Goldberg
Title: Chief Financial Officer
Company: MG Financial
LinkedIn Profile
(Chief Financial Officer, MG Financial) |

We do accrual accounting but budgeting cash flow is critical.

No we don't incur expenses in the same month as the course revenue.

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