for questions that relate to the laws, practices, and products of accounting.
2
votes
1answer
21 views
How to account for Capital Gains (Losses) in double-entry accounting?
After taking an introductory financial accounting class, I decided to use GnuCash to keep track of my personal finances. I have 5 major accounts in my general ledger:
Equity
Currently only used to ...
0
votes
0answers
23 views
How do I set up a budget in Quickbooks 2010?
I am treasurer for our school's PTO, and I use QuickBooks Premier Nonprofit Edition 2010.
I am trying to track budgets of two different types, and I can't figure out how to do it properly in ...
2
votes
1answer
63 views
What does it mean when a business reports its costs on a “fully loaded basis”?
What does it mean to ask a private business to report their costs "on a fully loaded basis"?
And then to ask them to "please indicate the fully loaded basis for which the costs are reported"?
2
votes
1answer
78 views
Orthogonal dimensions in Gnucash?
I'm part of a small not-for-profit organisation that would like to keep better track of its accounts. I'm trying to figure out if Gnucash is a suitable solution. One key thing that we would like to do ...
3
votes
2answers
125 views
Calculating Profit Ratio (Gross Margin)
When looking at a company's income statement to calculate the Profit Ratio (Gross Margin)
PM = Net Profit / Sales
Do you include "other" revenue in the equation?
Example: XYZ Ltd Income Statement ...
0
votes
0answers
38 views
Calculating the total capital of a company?
I was wondering how do we calculate the total capital of a company? Which items should I look for in the financial statements?
And how do I calculate notes payable? Is the same as accounts payable?
3
votes
1answer
62 views
What happens during the windup of a bank?
When a bank is wound up....depositors are usually protected up to a certain amount.
Let's say this certain amount is 100K.
If a depositor had 150K in the bank, the 50K will be 'frozen' or even ...
0
votes
2answers
51 views
How to measure the cost/value of an Asset in the Financial Statement
I am currently working on my own Financial Statements.
I have several blogs and derive considerable income from it then i decided to put all the assets and liabilities in the books.
My problem is ...
5
votes
1answer
39 views
FAFSA implications of filing jointly?
Recently our accountant filed a tax return as married for my partner and me (we live together). She is applying for FAFSA and is not sure whether she should be reflecting her marital status from our ...
6
votes
2answers
135 views
How to find out if a company is legit?
I'm from Sweden and considering opening a "Internet" company on Cyprus with a (valid EU VAT number), because of better tax benefits compared to Sweden and the UK (where I have other companies).
I've ...
2
votes
1answer
31 views
Why were numbers on these income statements recorded differently from year to year?
Below are two different income statements for Canadian Oil Sands Ltd. I am wondering how can their net income and other line items be recorded so differently across two consecutive financial ...
1
vote
0answers
82 views
Accounting for escrow payments in Quickbooks?
I am using Quickbooks 2011 Pro. I want to bill my tenants ahead each month for a utility (water) that itself bills once a quarter in arrears. When the water bill arrives, I want to make the next ...
1
vote
1answer
39 views
How would I categorise a personal account?
As a hobby project I'm writing a fairly simple open-source accounting package. It's aimed at individuals so you could argue I shouldn't bother with the more full-on accounting principles (like ...
1
vote
1answer
51 views
Debit/Credit confusion
For an asset account, I've learned that debit increases the balance. This makes perfect sense.
So that it's straightforward to calculate net worth, it would make sense that when I buy something on a ...
5
votes
3answers
115 views
Dealing with fractions of a penny
If my car insurance was £1200.01 per year, I could end up being charged £100 + 1/12p per month. I know that's not how it works, the extra penny is kept whole and goes on a specific month instead.
...
-1
votes
1answer
43 views
Personal Banking using accrual method
If I wanted to try the accrual method for my personal banking, how would I enter my salary?
For example, I get paid on the last Thursday of the month, and I pretty much know what it'll be. Should I:
...
2
votes
0answers
64 views
Software for keeping track of Loans and expenses between multiple people
I am keeping track of the finances for an eco-village using double entry book-keeping with GNUCash. I like it so far, but we are keeping track of loans we have taken out from many individuals (no ...
2
votes
1answer
38 views
How do you account for a cash payment by a customer in which some is used for payment to a vendor?
I am using Quickbooks Pro 2011. I received a $750 cash payment from a customer, then used $150 of it to pay a vendor's invoice, creating a bank deposit of $600.
I can't figure out how to credit the ...
0
votes
1answer
47 views
What is the meaning of “FQ2”?
I see the words FQ2 used in news reports sometimes, but I don't know what it means. Can someone help me here?
2
votes
1answer
95 views
Balancing a messy flat account
I am looking for advice on making sense of a mess of transactions for a 'flat account' which a previous tenant was operating and has handed over to me.
Our landlord had notified me that to my ...
5
votes
4answers
217 views
Payroll reimbursments
I am a salaried employee. Occasionally I use my own credit card for company business. When I am reimbursed I receive a separate check from my regular paycheck. My company does not tax the ...
1
vote
1answer
207 views
What are the costs to establish an LLC and to maintain it?
What's the average (approximately) cost to open a basic LLC in Florida state or in NY state? (FYI in my case is to buy an house in Miami and rent it. I already have a bank account in the U.S.)
What's ...
4
votes
2answers
306 views
Are in-kind donations from my S-Corp tax-deductible in any way?
I have an S Corp that each year, sponsors a film festival by creating their website for free. In return, they print our logo in their program guide. Last year, I gave them 80 hours of work building ...
5
votes
2answers
121 views
How should I record the changing value of an investment in accounting software?
I have the following (simplistic) structure set up in GnuCash, but this should apply to other software too:
Assets
Bank account
Pension
Income
Salary
Interest
Every month, my salary is ...
6
votes
1answer
64 views
Accounting for payment into wrong currency account
I deal with clients in several countries and have two bank accounts in two currencies. Recently, I sent out an invoice with the wrong bank account number, so a client invoiced in SGD made a payment ...
1
vote
1answer
796 views
Correct method of recording bank transfer in double-entry accounting
What is the correct way to record the transfer of funds between 2 accounts of the same type (ie checking account to savings account)? Since they are both debit accounts, wouldn't crediting one and ...
2
votes
1answer
122 views
Filing federal taxes for C-corp with no income
I started a startup in November, established as a C corporation. We made a single payment to a lawyer to have him file the papers and write the bylaws (payment was from my personal account). We didn't ...
0
votes
1answer
55 views
Accounting treatment for small bank verification deposits?
How do I record small deposits (e.g. $0.05, $0.07) as a result of bank verification for purposes of accounting? As income? Negative expenses?
1
vote
1answer
92 views
Sage Instant Accounts or Quickbooks?
I am a small business, single employee IT contractor looking for accounting software to do my annual returns and vat returns in the UK.
I've researched a bit about QuickBooks and Sage Instant ...
4
votes
1answer
151 views
What forces cause a company to write down goodwill?
Consider TimeWarner: In 2002, $128Billion of its $209Billion in assets was Goodwill. What forced them to write down this goodwill to $37billion a few years later?
3
votes
1answer
198 views
Meaning of “Non-trading Item” and “Capital Item”
I'm reading the income statement of a company, and the column describing profit is titled Profit from operations before non-trading and capital items. So, my question is a two-parter:
What is a ...
12
votes
6answers
431 views
Indie Software Developers - How do I handle taxes?
I apologize if this is the wrong site to post on, perhaps someone could point me to the proper place if it is not.
Hello,
I am 17 years old and currently develop applications/games for Android and ...
3
votes
1answer
214 views
Can I account for start-up costs that occur before incorporation?
I'm starting an LLC with a couple of partners. But before we incorporate we need to finalize a partnership agreement.
I would like to initiate a few time-sensitive things such as a patent search ...
1
vote
1answer
226 views
How to “pay” one self in a single member LLC w/ separate checking account?
I own a side company creating web apps. I formed an LLC, registered an EIN and opened a business checking account. Recently, I sold a copy of my software for let's say $10,000. Now, since everything ...
4
votes
1answer
99 views
In accounting and investment, what is the difference and relationship between balance and position
In accounting and investment, what are the difference and relation between balance and position, when talking about a checking/saving/investment account? Or are they the same concept?
Thanks and ...
3
votes
1answer
100 views
How should I document mandatory furlough in GNUCash?
My union contract requires a certain number of furlough hours be taken over the next year and a half. Furloughs are basically unpaid vacation--I don't show up, and don't get paid. How should I ...
0
votes
1answer
72 views
Form 8829 and Multiple Businesses
I work from home and had income from 3 sources
1) as an employee of an S corp (which I'm a small part owner of) main source of income
2) Consulting done under my name individually, separate from my ...
6
votes
1answer
102 views
I need a tax accountant, but don't know how to find one
Is there a trusted listing service for tax accountants? I'm reluctant to call the first listing I see on google or to search craigslist. I also have no idea what is a fair amount for such a person ...
2
votes
1answer
171 views
What are the tax implications for doing accounting on the cash vs the accrual method?
What are the tax implications in the U.S. for doing ones accounting on the cash method versus the accrual method? As I understand it the main difference is in the timing (i.e. which period) of ...
1
vote
1answer
114 views
Track uninvoiced (pre-invoiced?) expected income in Quicken
If I get a freelance assignment, at the point of the assignment I expect the income for the work to eventually be received. But there is no invoice yet so I don't think of it as a receivable.
What is ...
4
votes
1answer
55 views
Should you work out the yield on property or shares against the purchase price, or the current market price?
In What is a good rental yield?, there's some discussion about whether you should calculate yield by dividing the original purchase price, or the current market price. Which is the correct ...
3
votes
1answer
397 views
Why does the fiscal year in many countries start in April?
I was just wondering why in the UK the fiscal year starts in April. Is there any historical reason for this?
2
votes
2answers
241 views
Is it okay to issue myself a 1099 from my LLC, of which I'm the sole owner?
I own a small publishing company and occasionally publish my own books. I want to track royalty expenses on the products I've written, so my plan was to pay myself royalties, book it as a royalty ...
1
vote
0answers
114 views
What is a Typical Quickbooks Workflow?
I would appreciate a coherent outline of a typical Quickbooks workflow. Basically a list of what should be done and when/where from inception all the way down to reconciliation of downloaded ...
5
votes
1answer
647 views
Starting with GnuCash. How to eliminate automatic entries ending up in the “unbalanced” account?
I just started using GnuCash and there is something I do not quite get how to get rid of (and whether I should try to get rid of).
When I start importing transactions, I have expenses, income, etc. ...
0
votes
2answers
153 views
Expensive agenda book/organizer. Office expense or fixed asset?
I am unsure how to book an agenda book/organizer that was purchased for our business. Normally I book office/organizational expenses (notebooks, printer ink, etc.) as "Office Expenses" but the cost ...
1
vote
1answer
75 views
Calculating the cost of waiting longer for money
I'm trying to calculate the cost of waiting 30 extra days to receive money from a customer. Here's the situation:
How much would this cost a company per year if a customer pays us in 60 days vs. ...
2
votes
1answer
68 views
Accounting: Should a fee on an amount payable be applied in AR or AP account?
An application I'm building has a simplistic double-entry accounting component to it to keep track of funds passed owed to various parties. I'm unclear on how certain entries should be applied. Take ...
0
votes
1answer
183 views
How do I deduct from Sales Tax Payable in Quickbooks?
(This question could probably use a better title)
My current process for paying sales tax works as follows:
I collect payments against invoices from clients throughout the month
As I collect these ...
0
votes
1answer
110 views
Sales taxed amount in Accounts Receivable?
When I enter a new invoice for a client, for example $1062.50 ($1000 + MA sales tax) do BOTH Accounts Receivable AND Sales Tax Payable go up by the following?
Accounts Receivable +1062.50
Sales Tax ...
