for questions that relate to the laws, practices, and products of accounting. Please note that questions about accounting that are academic or have no bearing on personal finance are off-topic here.

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0
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1answer
18 views

How to categorize shared income?

I'm a total bookkeeping noob. My LLC has an agreement with another LLC where we split income coming from a particular source. As it happens the income comes to my business's bank account and then I ...
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0answers
15 views

Credit card creditors have two approaches to handling interest

Most credit cards calculate interest at the end of the cycle and add it to the balance. This reduces the available credit and when overlimit the cardholder is required to make a larger than normal ...
0
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0answers
19 views

How to include personal spending in private/sole trader accounting?

I am a private/sole trader (in Finland, but it doesn't really matter I think). I use my personal bank account for my private trader activities. I work as a designer and don't employ anyone. I have ...
1
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0answers
29 views

How to pass the following entry to journal? [closed]

The following entry has been confusing me regarding how to write it in the journal: "Owner purchased goods worth $99 on credit." I have understood the following about above transection: Since ...
0
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1answer
44 views

Should written checks be accounted in Accounts Payable?

Should the checks I write be logged via my Accounts Payable account, or just directly from my Bank Asset account to my Expenses account? I see issues with both methods: Bank Asset => Expenses An ...
0
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1answer
40 views

Term for both debit and credit [closed]

This is a vocabulary question: What English term could be used to represent something that is either a debit or a credit in a transaction (without specifically saying which one it is)? Something like ...
1
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0answers
61 views

How much accounting knowledge is needed to read financial statements of publicly traded companies?

"You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the ...
1
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0answers
32 views

How do I switch from payment to invoice basis?

I have done my personal finances using payment basis, because it is the simplest and the books of my small business are not particularly complicated. However, I have recently had to register my ...
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0answers
20 views

Rule of thumb for deciding between “description” and “memo”?

I'm new to accounting software. I've been going through some of my old statements and entering them into an accounting system. Because I don't really have any experience with this, I've been having ...
0
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1answer
56 views

How to handle taxes related to affiliate marketing?

I'm running a U.S. registered business, selling intangible services online. Part of my business is offering an affiliate account registration to individuals and companies who wish to earn money ...
0
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3answers
80 views

What is actually “exclusive of tax” mean?

Recently I got an offer for work from a U.S. company as an independent contractor, and in the contract it says "All amounts payable pursuant to this agreement are exclusive of taxes." I am quite ...
3
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2answers
98 views

What are some factors I should consider when choosing between a CPA and tax software

Its my first time filing taxes on my own and I need to decide between using some tax software like TurboTax or hiring an accountant. What are some factors I should consider when making this ...
0
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1answer
77 views

How to register obligatory social insurance?

Every month I have to pay a certain amount as social insurance. It is my debt - I have to pay regardless of my income. What should be the source of this debt? Opening balance from equities branch? ...
1
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0answers
30 views

Valuation of a public company's positions in “controlled companies” vs. “marketable securities”? [closed]

The latest Berkshire letter to shareholders (2015) states on page 1: ...the accounting rules that apply to controlled companies are materially different from those used in valuing marketable ...
1
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1answer
46 views

Accounting theory [closed]

A sole proprietor withdrew goods for a trade fair . How do I represent this as a journal entry ? A trade fair should be a business related purpose so it is impossible for me to debit inventory ...
2
votes
1answer
76 views

How to account for letting agent carrying rent over to next month's statement?

My letting agent collects my tenant's rent on the 11th of the month. They then take their fee (8%) at that time of the whole amount. Then they only pay out from the 11th of the month until the end of ...
0
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1answer
139 views

How to calculate depreciation?

I am not accountant and my question could be trivial but I will ask it. Let's say that I bought a car that cost $50,000. The maintenance cost over 5 years is $25,000. The revenue of the car over 5 ...
1
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2answers
125 views

How does IRS deal with 1099s across accounting methods?

For a US company using the accrual method of accounting, if they receive a bill in January 2016 for work done in 2015, I expect they are supposed to report the 1099 income to the biller as part of the ...
1
vote
1answer
116 views

Why is the number of issued shares less than the number of outstanding shares

We know that #issued shares = #outstanding shares + #treasury shares. So the number of issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K ...
1
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1answer
104 views

Can I count a 2015 expense, if I paid the bill in 2016? [duplicate]

I incurred an expense in 2015, put it on a credit card, but didn't pay it off until January 2016, can I count that as an expense for 2015?
1
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2answers
45 views

How do I calculate Future value adding fund charges?

Here is the statement on the NEST website. "We take a small percentage of the money going into your pot known as a contribution charge. This amount is 1.8 per cent." They then also charge £15 ...
1
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1answer
28 views

Question regarding Schedule 13D

I have very limited accounting experience, and I'm looking at the publicly traded firm, QC Holding, Inc. I want to know more about controlling interest in the firm, so I was looking at their SC 13Ds ...
4
votes
1answer
112 views

How would I account in GnuCash for me and another entity contributing to a joint account?

Me and my wife are starting a joint account, separate from both of our accounts. The intent is for both of us to contribute equally to the account and use it for joint purchases. When I make a ...
0
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1answer
29 views

How to do a direct cash flow statement given a stock ticker

Does anyone know of a good step by step process on how to generate a direct cash flow statement for a publicly traded company? I was able to look up their financial info (given their stock ticker) on ...
1
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0answers
40 views

Why debit and credit impact differently on different type of accounts? [closed]

Here is a table that I found in one of the accounting book: | Account Type | Debits | Credits | |--------------|----------|----------| | Assets | Increase | Decrease | | Liabilities | ...
0
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1answer
121 views

What for is Equity account in GnuCash?

What is the purpose of Equity account in GnuCash? For example, I have income through Salary account 500$, after I have expense by buying book for 5$ (so in Expense:Books account is entry for 5$). But ...
2
votes
1answer
56 views

Future Value of an annuity

If I pay 4 half-yearly installments in an investment scheme or I pay monthly installments of the same time (2 years). Interest rate in both cases is 9% compounded monthly. What will be my future value ...
3
votes
1answer
77 views

What does “writing down” the value of an asset imply?

My question was inspired by this article. Relevant quotes below: Fidelity, the only fund manager to have invested in the four-year-old company [Snapchat] best known for disappearing photos, wrote ...
2
votes
1answer
105 views

Online accounting with Stripe/PayPal transactions

I have a small solo business where I sell services on a website. I probably have about 100 small transactions per month and people pay me with PayPal or Stripe. I have been doing accounting in an ...
1
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0answers
25 views

How to record third-party fullfillment [closed]

I'm interested in selling products on Amazon. Once I have sales coming in, Amazon will track all purchases, returns, etc and then deposit the funds after a clearing period into my bank account. Since ...
2
votes
1answer
49 views

How to account for future claims to savings account?

Example: $1000 is in savings account Expected uses 1. Upcoming Annual Professional Dues: $300 2. Upcoming Annual Insurance : $700 Initially Asset: CASH SAVING 1000.00 Liabiltity: ...
1
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0answers
66 views

Can I reclaim VAT on U.S services such as Domain hosting?

I have a bunch of regular payments paying for hosting and other digital services coming from the U.S. There is no TAX stated on the invoices I receive and I'd assumed unless stated, then I cannot ...
1
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1answer
29 views

Comparison of online brokerage tax preparation features?

I'm trying to find a comparison of online brokerages when it comes to speeding up year end tax preparation. Especially when it comes to doing return of capital (RoC) calculations for REITs and MLPs. ...
2
votes
1answer
210 views

As a small business owner should I have a separate account for payroll? [closed]

Note: I'm currently using cash basis accounting. Just recently I've started using QuickBooks Online to keep track of my profit and loss as well as pay my employees. The problem I'm facing is that ...
3
votes
1answer
140 views

Need some advice on how to manage multiple income sources

I need some advice on how to manage multiple income sources. I am a programmer/entrepreneur that has started a couple of side businesses online and just need some help. Here are all my income ...
3
votes
1answer
89 views

Which type of company accounts to choose for LTD tax return?

I'm trying to file a File company's annual accounts on Companies House WebFilling website, however I've the following type of accounts: Abbreviated Accounts These audit exempt accounts are ...
2
votes
2answers
207 views

Balance Sheet Retained Earnings

Trying to get my head around a balance sheet and can't make sense of the fact that a company can make year on year profits and pay out dividends each year, yet the retained earning deficit increases ...
2
votes
3answers
91 views

How to journal an expenditure that provided no value

Let's say I buy a logo on a service like Fiverr for $5.50. The logo doesn't meet my needs, but I'm still obligated to pay the graphic artist for services rendered. If the logo had met my needs, I'd ...
3
votes
1answer
81 views

Managing an Account with Multiple Categories

Assume I setup and account that has multiple categories, say I have 1000 to invest, and I do something like this: 300 Kid 1 college 300 Kid 2 college 150 Emergency Fund 250 New House It is ...
2
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0answers
50 views

Does GAAP have rules for skipping a scheduled payment to avoid penalty on future payment [closed]

The purchase contract on a business has a set schedule of payments and if a payment is not paid timely, a late fee penalty is required, and if not paid within a set time period, interest is to be ...
5
votes
3answers
273 views

Does a company in the UK have to pay taxes on betting winnings?

Betting in the UK is taxed on the company level so the bettor doesn't have to pay taxes on his winnings. I have a company in the UK whose only objective is to trade on sports betting. Will I have to ...
1
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0answers
26 views

Quickbooks credit card reconciliation

When I put a payment into Quickbooks through the enter bills section and then pay it, when I go to reconcile the account the payment does not show up. Why would this be and how can it be placed in the ...
2
votes
0answers
37 views

Avoiding tax complexities of MLPs

I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that ...
2
votes
0answers
119 views

Salary vs Dividend: is this example wrong?

I saw a link to a great article in old (2012) question. http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/ I've tried understanding the article well, but I think that the author ...
3
votes
1answer
59 views

Switching Accountants - who does the audit review for past years?

If I switch my accountants, and the later CRA audits my returns (that were done with the previous accountant), who will be responsible for helping me with the audit: the new accountant or the previous ...
3
votes
1answer
168 views

How does Walmart account their expired food [closed]

Businesses such as Walmart makes tons of short-lived fresh food everyday (Bread, Coffee..etc) and at the end of the day there's so much food left unsold how do they do accounting for those food? Is ...
2
votes
1answer
81 views

Where should I start my LLC?

I want to release an iPhone app to the App Store and want to put my company name as the app's "seller" field. I was thinking of starting an LLC because I'm working alone and want to hire a developer. ...
3
votes
1answer
74 views

Do I need to pay US tax if my father puts half of his company (in the Dominican Republic) in my name?

I am a permanent resident of the USA (a green card holder) eligible to apply for citizenship, but I do not know how convenient this might be in my situation. My father has a company in the Dominican ...
3
votes
2answers
738 views

Why doesn't change in accounts receivable on balance sheet match cash flow statement?

If we take a look at the balance sheet for Microsoft, I see Net Receivables as 21,485,000 [2014] and 19,118,000 [2013] On the cash flow statement, I see Changes In Accounts Receivables as ...
1
vote
1answer
2k views

Does CAPEX include intangible assets?

CAPEX is defined here as funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. The video states that "the value of the capital ...