We’re rewarding the question askers & reputations are being recalculated! Read more.

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.

Filter by
Sorted by
Tagged with
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 ...
2
votes
2answers
2k views

What is the Equity account for 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
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
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 ...
2
votes
1answer
710 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 ...
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
vote
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 ...
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
660 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
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 ...
3
votes
1answer
485 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
900 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
100 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
128 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 pretty ...
5
votes
3answers
1k 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
vote
0answers
88 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 ...
3
votes
0answers
54 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
247 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
91 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
514 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 ...
3
votes
1answer
119 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
90 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 ...
4
votes
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)...
1
vote
1answer
17k 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 ...
11
votes
3answers
38k views

What is the difference between equity and assets?

I am (going to be) using GNU Cash, which uses the double-entry method; I use it for personal finance. Reading various tutorials for GNU cash, it lists 5 types of accounts: income, expense, assets, ...
1
vote
1answer
182 views

Must tangible assets be depreciated or can I take a one-time expense? [closed]

Let's say my company purchases some tangible/fixed/long-term asset. Am I required to take a prorated depreciation expense each year for the life of the asset? Do I have the option to report the ...
2
votes
1answer
115 views

Balance sheets & bad debt accounts [closed]

I have a confusion as to whether bad debt accounts are factored into the accounts receivable of a company's balance sheet? To clarify/illustrate my question, If a company is expecting $3000 in ...
2
votes
3answers
6k views

Simplified version of double-entry bookkeeping for personal and business finance?

I currently manage my personal finances based on a single-entry bookkeeping. It turns out that it doesn't fit my needs in the long run. After learning about double-entry bookkeeping and researching ...
1
vote
2answers
173 views

Could somebody explain Wikipedia's VAT example calculation to me?

Wikipedia example here. I could not understand why in this example ("With a value-added tax" subsection) the government charges 0.10 = $1 × 10%, but not 0.11 = $1.1 × 10% The manufacturer spends ($...
5
votes
1answer
19k views

Basic bookkeeping account entries for a house purchase and mortgage?

I borrow 200,000 to purchase a house worth 250,000, putting down 50,000 of my own. The borrowing is at 5% over 30 years. What are the basic double-entry bookkeeping entries I must make to record this ...
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 ...
3
votes
1answer
448 views

How do I record monetary advances and money spent thereof in personal accounting?

I have recently (i.e. from the beginning of 2015) started tracking my personal finances with GNUCash, without any previous experience in accounting. While the interface is mostly intuitive (thanks to ...
2
votes
1answer
227 views

Considerations for switching accountants?

I had a bad experience with my accountant this year. Normally things have gone smoothly enough. But this year was complicated, and I didn't help myself by doing some stuff (not relevant here) to make ...
1
vote
0answers
30 views

How to book past year's transaction, performed in the current year?

I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
0
votes
1answer
135 views

What's the difference between a company's after-tax profit and their sales/revenue?

Two fundamental analysis formulas have got me confused. One is the EPS (earnings per share) and the other is P/S (price/sales ratio). If I understand the formulas correctly, EPS is calculated by ...
1
vote
1answer
89 views

Do proceeds from a sale count as income for the decedent or the estate when agreement is prior to death and payment is after?

This is a question about US taxes and accounting. The documentation I've read says that if an estate is run on a cash accounting system, then any income received after the decedent's date of death is ...
12
votes
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 ...
4
votes
1answer
7k views

How should accounting software be categorized in terms of business expense?

I'm using online payroll software to manage payroll for employees and contractors. What category would the expense of this software fall under?
7
votes
1answer
449 views

How to double-entry bookkeep money incoming from sold items?

I started doing double-entry bookkeeping with GnuCash to keep track of my personal finances, down to the penny. I have as assets my bank account and "cash in wallet", and many expense accounts for ...
1
vote
1answer
186 views

In double entry book keeping terminology, what is the term or expression for when a journal entry both debits and credits the same account? [closed]

I configure point of sale software and thus deal with my clients' accounting people. I need to know how to properly express to them this situation, when they describe it. Thank you.
6
votes
2answers
507 views

How do I account for 100 percent vendor discounts in GnuCash 2.6.5

Consider this simple scenario, where I am running the accounts for a small business. No need to get into fancy standards (e.g. GAAP). A vendor sends my company a bill for $100. The work is complete ...
1
vote
2answers
852 views

What is the purpose of marking-to-market a futures contract?

Suppose I enter into a long futures contract to buy 1 ounce of gold at 1200$/ounce for delivery in May 2015. Between now and May 2015, the market price for a similar contract will certainly vary. Do ...
6
votes
5answers
2k views

How to divide up utilities when one tenant's rent includes utilities, but others' don't?

This is an extension of my question asked here. Four roommates are living together. Two are co-tenants, who hold the lease, and the other two sublet from the co-tenants and pay rent and utilities to ...
1
vote
0answers
259 views

Preference shares vs. common shares and overall holding structure for a public company?

I am trying to understand the overall holding picture for a listed company — like, there can be preference shares, common shares (free float), etc. My questions are: It would be really great ...
2
votes
0answers
185 views

How to divide up utilities amongst tenants? [duplicate]

Let's say I have two tenants who share my apartment with me. It is agreed that utilities shall be divided equally amongst us. However, one tenant has, as part of his lease, a stipulation that all ...
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-...
1
vote
1answer
697 views

How can I import customers and invoices from a previous year's Gnucash file?

I've been using Gnucash for the past year for small business accounting as a self-employed contractor. I've read that it's a good practice to create a new file for each year. Now that 2014 has ended,...
1
vote
1answer
9k views

What is the difference between a creditor and a lender? [closed]

Can you share specific examples? Also, when are they the same entity and when are they different?
0
votes
1answer
106 views

Rationale behind discount bonds?

I'm trying to understand if my rationale behind discount bonds is correct. Let's say Company X issues a 2 year $1000 bond at 5%, market interest rate is 10%. Because the coupon rate < the market ...
4
votes
1answer
382 views

The formula equivalent of EBITDA for personal finance?

I am considering the idea of trying to run my household finance more like a business and I am looking for formulas to gauge household financial health. I am running into issues with EBITDA for example,...