Whenever a business makes a transaction, whether it’s purchasing equipment, taking out a loan, or paying a utility bill, it should be tracked and recorded in a chart of accounts (COA). Doing so helps keep finances organized and supports sharing financial information with worker-owners. To help worker cooperatives track transactions properly Wholehearted Bookkeeping has developed chart of accounts samples for LLCs and corporations.
At age 60, when many of her friends are considering retirement, Josefina Luna is chair of the board of CERO Cooperative Inc. CERO is a five-member worker-owned cooperative on a mission to encourage composting and create jobs in the hard-up Boston neighborhoods of Roxbury, Dorchester, and East Boston. It's a small but unusually diverse team: Of the five worker-owners, two are African-American, two are Latinas, and one is white. They communicate in English and Spanish.
This pro forma template is intended to aid cooperative entrepreneurs (and the developers who serve them) in making a preliminary financial assessment of their worker cooperative startup. Many worker cooperative startups are learning business finances for the first time. This tool offers a framework to think about their business and some labor-saving, pre-built Excel formulas.