How Startups can track and calculate Customer Acquisition Costs in Quickbooks Online

Tue, 31 October 2017 - Vanessa Kruze

How to effectively track and calculate Customer Acquisition Costs:

Implement a Class System

Move to a Department-based COA

Which one is best for me?

• If you are content with your chart of accounts and current format of the P&L, you would be best suited implementing a class system. A class system is simplest, and most cost-effective option without materially changing your COA and financial statement presentation.

• If you would like to better analyze spending on a department level, then you’d be best suited to implement a department-based chart of accounts. This would entail a revamp of the chart of accounts, with the appropriate subaccounts created for each department.

Note: Both options require diligence on your part to instruct on which types of outlays (and vendors) should be allocated to each department and to properly categorize expenses on Expensify (either by class or the correct departmental account).

General template for assigning classes to transactions/vendors:

Sales & Marketing

OPS

G&A

Engineering

COGS

Kruze Consulting is a leading CPA firm only serving funded startups. If you are a funded startup, choose Kruze Consulting’s team of CPAs, bookkeepers, CFOs, former IRS tax auditors, and venture experts. Besides being expert QuickBooks accountants, our firm handles all things Accounting, Tax, Finance, & HR: interim CFO Consulting, financial modeling, annual taxes, R&D tax credit studies, venture debt consulting, 409A reporting, bookkeeping, AR/AP, and Seed/Series A/B Fundraising Preparation. Contact Kruze today!

 

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