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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2
votes
1answer
702 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
132 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
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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
314 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
972 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: ...
7
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1answer
657 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
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1answer
726 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
703 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
775 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
791 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 ...
7
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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
218 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 ...
4
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1answer
88 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 definition,...
0
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2answers
352 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 ...
0
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1answer
867 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
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1answer
308 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 ...
1
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1answer
99 views

What does a high operating margin but a small but positive ROE imply about a company?

I'm analysing this company and am curious to what these figures mean about the operation of the company. Can someone comment on this?
2
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2answers
134 views

Accounts Receivable included in Gross Sales?

I am trying to determine my sales tax. In a given quarter, let's say I close a deal for $2000 and collect $500 as a deposit. Which number is considered in my "Gross Sales", the $2000 or the $500? ...
6
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2answers
603 views

Consider Paypal fees in accounting

I'm a freelancer. I sent an invoice to my client (using InvoiceBubble.com), which he decided to pay via Paypal. Paypal took a fee. How do I take this fee in consideration for my accounting? I marked ...
3
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1answer
4k views

How to record expense sheet as journal entries in Quickbooks Online?

Let's say I own a business and I make 3 business-related purchases on my personal credit card in August. Given the following example expense report: 08/01/2011 - $20 - Web Hosting 08/05/2011 - $130 -...
1
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1answer
13k views

How to report a bill was paid in journal entry?

I have a couple bills in my name in QuickBooks from business expenses that I paid for personally. I have since paid myself back ("paid the bill") but it was during the early months of my business (no ...
2
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1answer
1k views

How to account for money earned and spent prior to establishing business bank accounts?

In terms of QuickBooks... How does a newly started business, an LLC in my case, account for payments received and money spent PRIOR to having organized business bank accounts in place? Is there a ...
3
votes
3answers
664 views

How to account for a shared mortgage in QuickBooks Online?

I co-own a house with two unrelated friends. We have a single mortgage that we're each responsible for our fraction of. We've been keeping track of our payments in a spreadsheet but for a variety of ...
6
votes
1answer
2k views

GnuCash bookkeeping for account contributions to accounts having annual contribution limits?

I'm using GnuCash, and trying to figure out how to structure a couple of accounts to track contributions to accounts like Roth IRAs and HSAs that have an annual contribution limit that I need to track....
3
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2answers
670 views

How to consider stock splits with respect to ETFs? Any different than for regular shares?

"Splits are used to increase the availability of shares on the market." I am unsure about this statement because you can increase the availability of shares through third-party funds like with ...
6
votes
1answer
151 views

How do I interpret these income tax numbers for Chinese public company Dangdang Inc. (DANG)?

I'd like some help with understanding the financial statements of E Commerce China Dangdang Inc (ADR). You can see the Income Statement/Balance Sheet/Cash Flow statements on Google Finance. If you ...
3
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1answer
219 views

How important is reconciling accounts for a small LLC (Quickbooks)?

We are in our first year of starting a small LLC. We are using Quickbooks Online and things are going well. The only exception is that, due to our lines of credit and bank accounts being personal (...
3
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2answers
2k views

What can a CPA do that an EA cannot, and vice versa?

A lot of the responsibilities of CPAs and Enrolled Agents appear to overlap, but could someone outline the key differences? When would I choose to hire one versus the other?
5
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4answers
385 views

What could be the harm in sharing my American Express statements online?

I would like to store my American Express statements in Google Docs so that my virtual assistant can log the line items into my accounting spreadsheets. It is also handy so that they are in one place ...
4
votes
1answer
2k views

How is Net Present Value (NPV) superior to Equivalent Annual Cost (EAC)?

Although EAC presents advantages by taking into account the lifetime of the project, my professor recommends using NPV instead of EAC. Can anyone explain why NPV is considered superior to EAC?
5
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1answer
244 views

Marriage merger of finances and continuity of records

I just got married last week. Yay! I've been using Microsoft Money for 15 years. I have one gigantic file that has all of my transactions since early 1996 in it. I can use it to generate all kinds ...
4
votes
1answer
531 views

How do I track investment performance in Quicken across rollovers?

I use Quicken to track investments. I'd like to track performance. Here is a situation that feels wrong: I buy stock S for $10/share. I hold for 5 years. I sell S at $20/share and buy S2 for $20/...
5
votes
1answer
4k views

Accounting treatment for store credit

I just got store credit when I returned some bad juice. This left me wondering. Which accounts receive the entries when a store issues store credit? For example, when I made the payment for the juice,...
2
votes
1answer
405 views

How to represent “money down on new contract” in general journal (general ledger)

How would the following scenario be represented as a general journal entry? Jan 1, 2011: Customer signs contract for $1000 and pays $500 as a down payment and agrees to pay the remaining $500 at a ...
5
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2answers
108 views

How does one apportion returns to multiple investors when their times and amounts of investment were different?

No accounting experience here. The problem: Man A invests $10 on day 1. Man B invests $5 on day 4. Man C invests $85 on day 5. On day 7, the $100 returns 10%. How do you fairly distribute it?
5
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2answers
510 views

Where do expense ratios show up on my statement?

This answer describes the lowered expense ratios of Vanguard admiral shares compared to Vanguard investor-class shares. How do I tell from my statements that I am saving money through the lowered ...
4
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3answers
426 views

How do I add my income to my personal finance balance?

I've never understood accounting really, apart from the basic concepts. Supposing I want to keep a better track of my money, I'm using Excel at this moment. I guess I need to move to some double entry ...
6
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2answers
370 views

Nit picky personal accounting question: What is the right way to record borrowing from yourself?

I keep a spreadsheet with my personal financial statements (balance sheet, income statement, cash flow) that generally follows the corporate approach. I omit considerations of depreciation, etc. There'...
5
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1answer
1k views

Can dues and subscriptions expenses be deducted 100% to calculate taxable income in an LLC company?

I'm using Quickbooks Online, "Dues & Subscriptions" is one of the expense accounts we have. I would like to know if this expense can be deducted 100% for calculating my taxable income. Our company ...
8
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3answers
4k views

What does “write-off” mean?

I've heard this term throughout my life but I've never been entirely sure exactly what it means or why you would want to write something off.

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