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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4answers
242 views

How should I account for Social Security contributions?

I'm currently tracking all my finances with GNUCash, and splitting the various paycheck deductions into expenses. It's pretty nice to be able to correctly predict what will be on my W2, and it's even ...
-1
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1answer
994 views

few question about debit credit and liabilities [closed]

i have few question about accounting terms, please help me to figure it out these term and debit and credit flow to our company account. 1) i sold 500$ cost products on account, buyer will pay me in ...
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2answers
2k views

Accounting for paying bills for (and being reimbursed by) another person

I an currently using Gnucash to manage my expenses. I am new to double-entry accounting and find many aspects of it to be confusing. Here's a situation that currently happens monthly. I'd like to know ...
0
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1answer
149 views

Which account type to use for claimable expense I pay upfront for my employer?

I am using GNUCash for personal finance. Sometimes I pay expenses upfront for my employer with cash or credit card. My employer will pay me back later with cash or cheque. I am thinking of using ...
1
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2answers
670 views

Does “NET 30 DAYS” on a legal invoice refer to 30 days after the billing period end date, the invoice creation date or the invoice receipt date?

Does "NET 30 DAYS" on a legal invoice from a US law firm refer to: 30 days after the billing period end date (the last day for which hours are billed) 30 days after the invoice creation date (...
2
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1answer
682 views

How to properly name expense accounts (fees and fines, resp.) with public bodies in the context of personal (non-corporate) bookkeeping? [closed]

How to properly name expense accounts (fees and fines, resp.) with public bodies in the context of personal (non-corporate) bookkeeping? Of course I can just make up a random names, but if standard ...
2
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2answers
327 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 ...
1
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1answer
783 views

Prepaid Rent (Accrual Based Accounting)

I am running a small business that prepays office rent on the 25th of each month (for the next month). I am using accrual based accounting with QuickBooks. My question is, do I need to debit current ...
3
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3answers
3k 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 ...
2
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1answer
887 views

Asset Sale: Net proceeds to cash AND capital gains?

This is very simple but I'm having trouble figuring out how to account for the sale of an asset, in double-entry bookkeeping, in a way that shows the net proceeds going to cash AND recorded as a ...
2
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1answer
428 views

Where to record existing assets when starting double-entry accounting

Very rarely would anyone start recording their accounting with zero assets or liabilities. Question is - under which account would you record them? Specifically, if you own property, you would debit ...
2
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1answer
327 views

Is a Scan of my receipts enough for my accountant?

Is a Scan of my receipts enough for my accountant in order to state my expenses for tax refunds? Or does my accountant need the total-100%-original-paper-receipt? Are there any laws about that in ...
3
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1answer
2k views

Making good use of the (optional) Num column in gnucash? “name-of-counterparty” column

In previous humble attempts to learning-the-ropes of household accounting (in conventional spreadsheet software) I used to have a column to hold the name of the counter-party, e.g. the supermarket ...
1
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1answer
73 views

Accounting: Automatically Sort And Put Timestamp In Right Corner On Invoices I Receive

Whenever I do my taxes I have to collect all my invoices and add the date with a pen in the right corner and then sort them by date, my question is - are there any programs that can help me automate ...
7
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1answer
210 views

How do I enter a house sale into my accounting package?

We sold our house and purchased a new one. The money from the sale went into our lawyer's trust account, and then was passed onto the vendor that sold us the new house. In my accounting package, I ...
2
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1answer
196 views

Generally Accepted Accounting Principles question

In QuickBooks 2011 for Dummies, pg. 24, there are listed several generally accepted accounting principles. I see that Expense Principle The expense principle states that an expense occurs when the ...
2
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2answers
158 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. 30 ...
2
votes
1answer
1k views

How can I debit money to Accounts Receivable in Gnucash without raising an invoice?

I have some income from Amazon Associates that is paid to me automatically every few months. I don't raise an invoice and Amazon doesn't create one for me. Amazon does specify a date when the payment ...
2
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1answer
246 views

Special bank account required for a LLC?

I've just incorporated my first LLC in the UK. I'm now looking to open a new bank account to keep my personal finances and the business finances separate. Could I sign up for say a regular Halifax ...
11
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1answer
567 views

How to record the finding of 10 dollars lying on the street and their subsequent placement into one's wallet (in gnucash)?

Within gnucash: within the Cash in Wallet account: description: found some money in the street transfer: Imbalance-USD or create a new arbitrary one-off account called something like "Penny Lane" or ...
0
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2answers
375 views

Can someone recommend a book that discusses the differences between types of financial statements?

I'm interested in learning the differences between profit and cash, but also about cash flows and financial statements. What book do you recommend I read? I want to read a practical book that ...
3
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1answer
2k views

Quickbook Balance Sheet showing strange numbers (to me at least)

I have been using quickbooks for some time (less than a year) and today when I was looking at my balance sheet I noticed something that seems really strange to me. My Total Assets number is $300,000. ...
0
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1answer
662 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 ...
6
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1answer
203 views

Verification of student loan amounts

I consolidated my student loan debt with FedLoan a year or two after graduation. Is there an easy way to verify that my current balances are accurate? Is this something an accountant would handle, or ...
6
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2answers
4k views

In double entry accounting, how do I enter a loan?

I have taken an accounting course several years ago, but I'm a little rusty. I'm using GnuCash, double entry accounting software. I have a loan from a friend, so no interest. I have paid about half ...
6
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1answer
978 views

Does total US public debt include state debt?

When I see total US public debt, I wonder whether state debt is included. If "total US public debt" used differently for different cases, I will restrict my case to the usage in national accounting/St....
6
votes
1answer
4k views

How to report my revenue from Apple iAds and App Store sales, without an invoice?

For accounting purposes, we need an invoice for accounts receivables, but when you get a payment from Apple for iAd revenue and app sales, how do you issue an invoice ? Are there any specific ...
5
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1answer
87 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 ...
3
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2answers
4k 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 ...
3
votes
1answer
423 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
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2answers
251 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 ...
1
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0answers
609 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 month'...
2
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1answer
679 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 ...
3
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1answer
131 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 ...
6
votes
3answers
1k 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
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1answer
313 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 double-...
0
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1answer
946 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: ...
6
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1answer
636 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 ...
2
votes
1answer
719 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 ...
5
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4answers
700 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 ...
4
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2answers
2k 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 ...
2
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1answer
772 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 ...
4
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1answer
1k 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?
4
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1answer
766 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 ...
17
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6answers
3k 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
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1answer
701 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 ...
0
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1answer
142 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
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1answer
8k 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 ...
7
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1answer
213 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
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1answer
341 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 ...