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Questions tagged [accounting]

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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4
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3answers
162 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 decision?...
-1
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1answer
991 views

How to post a coupon discount in the ledger

If I am interested in keeping track of the amount I have saved through coupon discounts, how can i Post the transaction on a ledger. Can't see discount falling into any category: asset, expense, ...
2
votes
1answer
126 views

Income tax for a tradesman / builder

Suppose I employ a builder to do a job for me. For this, he charges £100 for labour, and £200 for materials at cost. Suppose his income tax is charged at 20%. So, he will give £20 in income tax from ...
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0answers
2k views

How to include loan repayments in income statement?

I realize I'm kind of lumping an income statement and statement of cash flows together, but this is still the easier way of doing things for my particular use case. I'm trying to do an income ...
3
votes
1answer
249 views

Plumber charging VAT on parking

I have a plumber do some work for me recently, and in the invoice he included the parking cost. This was for on-street parking, which I know has no VAT applied to it as it is a direct payment to the ...
12
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6answers
16k views

Why use accounting software like Quickbooks instead of Excel spreadsheets?

Some friends and I are starting a small landscaping cooperative, and are thinking about how we will manage accounting. Places we've worked in the past have used Excel spreadsheets to manage all of ...
1
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1answer
65 views

Does Profit and loss has break down on previous/current tax year or full calendar year?

I'm doing my personal tax return at tax.service.gov.uk for my Limited company and it may be sound very simple question, but it's confusing for me. Given the following Profit and loss table for tax ...
3
votes
1answer
226 views

PF transfer taxed under 194A India

I have changed my job (previously TCS) in August 2015. I Transferred my PF in May 2016. As far I know PF is not taxable. But in my Form 26AS I see 800(10% of interest accumulated from September 2015 ...
0
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1answer
1k views

Accounting for foreign exchange transactions and difference between market rate and rate given

I am trying to find how to account for the change in exchange rate and the rate given to me by my bank. I understand the rate change between two dates is a foreign exchange gain or loss, but what ...
0
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1answer
3k views

Difference between double declining balance and reducing balance

As I understand it if we have a double declining balance asset worth £10,000, declining over 10 years, we will depreciate by an annual rate of 20%. But I have also been told that double declining is ...
3
votes
1answer
206 views

What would be the appropriate account for written off loans to friends and family?

In the past I have lent some money to friends and family, which I have not gotten back. I don't want to ask them for the cash, but I do want to clean up my accounts. How would I record this in my ...
9
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3answers
1k views

Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200?

I am confused about calculating Massachusetts Sales Tax (6.25%). Is there such an amount, that when added to its sales tax, equals $200? The reason I ask is because my business has been charging $...
4
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4answers
7k 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 (1,120,000)...
0
votes
1answer
82 views

Double entry accounts for money judgement award

I won a legal settlement in which the total amount to be paid to me will be done in instalments. Interest will accrue. I debited the principal and interest accruals to an asset account and credited ...
0
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1answer
125 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 ...
1
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1answer
335 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
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2answers
3k views

Can I invest C-corp or S-corp profits by purchasing stock, bonds or property to reduce tax liability?

If I own a C-corp or an S-corp in the US ( say for example Delaware ), and I take profits from revenue after expenses for the corporation and purchase stock in the US stock markets, bonds or other ...
1
vote
1answer
7k 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
105 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 ...
2
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0answers
50 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 ...
0
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1answer
737 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
666 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 ...
6
votes
5answers
189k views

Account that is debited and account that is credited

As a non-English-native person, I somehow find it difficult to understand the following: When an account is said to be debited, what does this mean? How does this differ from an account that is ...
2
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1answer
299 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 ...
-2
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1answer
857 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
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1answer
104 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
3k views

Adding some more value to some existing fixed asset

Suppose i have a computer system worth $600 which i purchased on 1-jan-2012 and now i have purchased more RAM on 6-7-2012, how to do this kind of transactions properly. How to add value to an asset? ...
9
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2answers
7k views

Why is a coin an asset whereas a note is a liability on the Federal Reserve's balance sheet? [closed]

Can someone explain me why coins are assets and notes are liabilities for the U.S. Federal Reserve? I know coins are made from "precious" metals, but even notes are made from various materials too, ...
0
votes
1answer
3k 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
3k 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
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1answer
217 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
76 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
37 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 ...
0
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3answers
16k views

Why is salary a credit if money comes in? [closed]

I am new to keeping accounts. Today I learned that debit is what comes in credit what goes out Then how can we say that salary gets credited when the money comes in?
2
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1answer
114 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
406 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
votes
1answer
51 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 ...
3
votes
2answers
2k views

How to represent “out of pocket” purchases in general ledger journal entry?

If you use personal money to pay for expenses (advertising, equipmemt), how do you represent this in a journal entry? Normally, if the money was coming from the business, you would just decrease the ...
1
vote
2answers
690 views

How to correctly track a covered call write (sell to open) in double-entry accounting?

I recently started using gnucash for personal accounting, but I guess this question doesn't depend on the software. I sold a covered call, and I'm not sure how to keep track of that in the double-...
3
votes
1answer
166 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 ...
1
vote
2answers
5k views

How to account for Unrealized Gains in a Trial Balance?

Using GnuCash, When I run a Trial Balance on my accounts, my Debits exceed my Credits by 875.00 wich is the same amount of my Unrealized Gains on the Balance Sheet. How do I reconcile this in my ...
3
votes
1answer
196 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 ...
3
votes
1answer
697 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
35 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
70 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
171 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 ...
3
votes
1answer
2k views

Is there a difference between managerial accounting and financial accounting?

In many universities and schools, there is both a Managerial Accounting and a Financial Accounting course. From what I can gather, Financial Accounting covers accounting from an perspective of an ...
3
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1answer
13k 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
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2answers
6k views

What does Capital Surplus mean?

Given this information below, what does capital surplus mean? When does a capital surplus go up? What is the formula of capital surplus? I have read Wikipedia's definition, and it only seem to ...
3
votes
1answer
117 views

How do you Record Revenue from ads?

I have a website with an increasing traffic so I decided to make it as a business and add ads into the website. I'm currently in the process of registering my business and I don't get how would I ...