I have a new client, one doing an activity I have never handled and didn't know existed until I met her. I'm wondering if anyone else has had a client like this one and if so, would you be able to provide a sample chart of accounts, for starters?
This is a husband and wife. He does scientific research and is paid through grants. There are organizations who handle all of the accounting functions for these researchers and evidently charge a significant amount to do so, then they pay the researcher with a W-2 from their own organization. The researcher can not have access or control over the grant funds, therefore they enlist the aid of the intermediary. The wife has set up an LLC so she will be the intermediary and funds will be channeled through her company, she will pay husband a salary from her LLC. This arrangement is allowed.
I'm just setting up the business in QB and I'm working on the COA now. Do I set up the COA to reflect the grant expenses as well as the general administrative expenses of the LLC? If anyone has suggestions or can provide some direction for this, I would be appreciative.