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What Other Accounting Problems Visitors Have Needed Help with

Click below to see small business accounting problems from other visitors to this page...

How do you use the simplified deduction method for a home office? 
If you run a business out of your home & use one room exclusively as an office, how do you know how much you will be allowed to use as a deduction? I …

what account would i post shop supplies to ie. grease, oil, etc.. product that i purchase for use on car repair but don't itemize on an invoice to a customer..  
What account would I post shop supplies to - ie. grease, oil, etc. - product that I purchase for use on car repair but don't itemize on an invoice to …

How to initially enter inventory? 
Hi, Kathy. I just found your site and have already learned several things, thank you so much. I have just started my own small business after retiring …

Truelite Trading Sdn Bhd 
Hi Kathy, my question is my boss every month take 1000 money for entertainment but no bill submission so this account i need entry to where? Please …

Truelite Trading Sdn Bhd 
Company paid for Factory Housekeeping Lady by month but this not a salary so what account (General Ledger) i need to put it? Please help me.. Thank …

Pawn and cash loan accounting 
I operate a small Pawn business that pawns mainly cars. For example, someone brings me a car worth say 20,000 and wants to borrow 5,000 I then park …

Owner's Capital  
Hi Kathy, If your bank statement reports your beginning cash balance for a new fiscal year, let's say $200, would that be considered your balance for …

How to have my company pay for my work truck? 
I own a small S corporation and use my truck to go to residential houses to complete work in my local area. Mostly 2-3 trips a day locally. I bought …

Recording Inventory on the Balance Sheet 
Hi Kate, Hope all is going well for you. I am back with another question which is giving me a challenge. In the business where I work, there is inventory …

Cost of goods sold  
From Ask the Expert: Hello Kate! Hope all is going well. I have a question and it pertains to cost of goods sold. I understand this concept at the …

The Balance Sheet 
From Ask the Expert: Hello Kate! When creating the balance sheet for the prior year, how do you calculate the assets when all you have is bank statements, …

Using bank statements  
Hello Kathy, when working in a small business, and you have no cold statements to reference to but bank statements. How do you use the bank statements …

Journalize down payments on alterations  
From Ask the Expert: When working in a business and partial of the business transactions include down payments. How do you journalize the transaction …

Receiving Electronic Payments 
Here's a question from a reader: We run our accounts receivable/payable through Quick Books. When I receive a check from a client, I have the paper …

Payroll 
Can I take a payroll check if I set my business up as a S-corp? ------------------------------------------- Hi Bill! Yes, you can and you should …

How does a Canadian business record VAT charged by euro vendor in quickbooks 
I do the bookkeeping for my husbands business and I am having difficulties figuring out how to record the VAT charged by my vendor in Sweden. They drop …

Timing of recording a credit card sale when using cash basis accounting Not rated yet
I work at a small art gallery that uses cash basis accounting. Our bookkeeper records credit card sales on the day we receive the payment from the credit …

S Corp Ownership Change Not rated yet
I am currently working for my dad in his s corp but we need to transfer 50% of the shares to me since we will be operating as partners from now on. We …

Business credit card rewards Not rated yet
How do I enter business credit card rewards in Qbooks? I need detailed instructions please. -------------------------------------- Hi Pamela, …

I'm a new S corp of one. How do I just pay myself? Not rated yet
I see all these options for setting up payroll in respect to hiring employees. I am only concerned with properly paying my self. I am the CEO of a new …

Accounts Payable Not rated yet
I have posted an invoice to the wrong supplier account, subsequently that invoice has been paid and the money allocated against the invoice. The supplier …

How to record and afjust within company USD and CDN cash account Not rated yet
Hello we are Canadian business with Canadian account. I have also opened US account last year and transfer fund from Canadian account. How do I record …

VAT refund recording Not rated yet
Hi We are a company in Canada spend time in cannes and paid VAT for the expenses. We will be claiming back the paid VAT amount. How do I record this …

Where is downpayment for land purchase shown on balance sheet? Not rated yet
(a church) We purchased land for $850,000 after paying $15,000 down. At closing, we paid the seller $193,000 and financed the balance with a bank. I …

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Down payment money Not rated yet
I am purchasing a small business. My folks have put up 35,000 for my down payment. Should I leave that money in their account until the time comes, or …

How detailed should my Chart of Accounts be vs using a Subsidiary Ledger? Not rated yet
Hello, I am setting up the books for a small theatre that runs shows and teaches classes. My question is, what should I assign an account number to …

How to allocate Cost of Goods Sold for a manufacturer  Not rated yet
Hello, I am a small manufacturer. I have small indirect materials and supplies that I use to make my product. However, the cost of the supplies is …

Accurate accounting for layers and broilers business Not rated yet
Hi Kathy, I have poultry 2500 layers and 500 broilers but I have no idea how to record the daily activities accurately. Example the eggs my staff collects …

CASH DRAWER BALANCING Not rated yet
When balancing cash register, what is an acceptable discrepancy ( cash over or short)? ======================================= hi Pascale! For …

do i have to show where exactly my sbaloan goes to Not rated yet
I'm getting an sba loan however I am using some of the money to pay off credit card that I used to purchase equipment for my business. DO I need to keep …

Business Loan Not rated yet
If a personal loan is made to a business (for working capital) how long can it be on the "books". In other words a loan was made in 2008 but not paid …

Corporate stock transfer with payroll question... Not rated yet
My Dad transferred 100% of the stock in his small, corporate business to my brother effective May 1st. He didn't want to wait till the end of the quarter. …

Debit/Credit Card & Draft info Not rated yet
How long does a business need to keep Debit/Credit card and Bank account & routing information for? We have this billing info for accounts that are …

Should I use company account money to repay housing loan? Not rated yet
I am a music teacher and recently registered a company. It is a sole proprietorship company. It's solely owned by me. My question is besides using the …

Bookkeeping for two locations Not rated yet
Currently have an LLC and one retail location. Expanding to a second location with the same retail brand. Currently use Quickbooks. I want to track …

is gas an expense that can be written off for a construction business? Not rated yet
I am keeping the books for a small construction business that recently went from a sole proprietor to a duel partnership. in the past we've used standard …

how to install manual accounting system for small business Not rated yet
How do you setup a manual accounting system? -------------------------------------- I've addressed this question several times, and I'm going …

cash disbursement and cash receipts journal Not rated yet
I am trying to take over the accounting end of my husbands small Tile installation business. All he has handed me is the bank statements, a ton of receipts, …

you are a payroll accountant for a small business. a friend ask you how much the hourly pay of another a employee in the business is Not rated yet
Let's say you are a payroll accountant for a small business. A friend asks you how much the hourly pay of another a employee in the business is. What do …

Recording to the loans payable account Not rated yet
I have been using a personal credit card for purchases for my business. When I pay the bill, I record the payment in my check register and use the long …

Is cash disbursement as loan to another company recorded as an expense on income statement? Not rated yet
Company A (a C-corp) loans money to LLC (no affiliation to Company A). On Company A's income statement, is the disbursement records as an expense? …

Where do I enter tools purchased with a Credit Card? Not rated yet
We (my husband's and I) started a Home Inspection business in June. It is completely service based. No inventory. I am entering all receipts from the …

interest on overdue accounts receivable question Not rated yet
We charge 2% monthly interest on our overdue accounts receivable. We have it set up to charge the interest on the principle sum of the original invoice …

Classification of items Not rated yet
I am helping my cousin set up a small business, Her business is an equestrian facility where she gives riding lessons & boards horses. I know the boarders …

Accounting Concepts Not rated yet
What is the accounting concept when paying a bill? ================================= Hi Robin! I'm not sure what you mean. Do you want to know …

Setting up a GL account for settlement from my divorce Not rated yet
How do I set up a GL account in my company for settlement/payments I am required to pay to my ex spouse for their interest in my company? ============================ …

I just started my own painting business and boy do i have quesions Not rated yet
I have a small painting business and really all I have is insurance and a tax i.d.. What and who should I talk to to expand and grow rapidly. My work is …

Inventory Not rated yet
I use business money to have books published. Buying 2000 books. I sell 1000 books and the initial debt to the business is payed back. How do I report …

Job Income vs Gross Sales Not rated yet
Is there a way to exclude materials costs, or subcontractor expenses from your gross sales? I'm a roofing contractor and my Subcontractor expense is about …

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accounts receivable question Not rated yet
Hello, We are having a debate in our office right now and hope you can resolve an issue. I'm in a retail department. I submit an invoice into AP dated …

Entering a SBA Loan into my accounting system Not rated yet
We received a loan for $700,000, after giving a commitment fee of $7,500. The majority of the funds never hit our bank. Instead, some of the funds were …

How do I keep records for a poultry farm? Not rated yet
How do i keep records of a poultry farm finances? ----------------------------- Hi Fred! Keeping books for a poultry farm would entail tracking …

Payment to Mini Storage  Not rated yet
Good Afternoon Kathy, Hope you are doing great. Anyhow, just a small concern, how do you account for a payment made to a mini storage? This transaction …

online Business asset purchase initial accounting Not rated yet
I am going to purchase an online business. Seller is the only employee running the business with one computer. This is an ASSET purchase. I get the …

Recording Transactions  Not rated yet
Good Morning Kate, Hope you are doing well. I am back with another question for you. In the business I work at, the business owner, some time's pays …

Real Estate Brokerage - Do I need to have at least one employee? Not rated yet
I have a small home based real estate brokerage business under a S-Corp. It is a part time business, and I have no employees. This year I have sold several …

Product Sales with Postal Stamps as payment Not rated yet
I have a prison pen pal website (www.ConvictedFemales.com). Female inmates purchase Profile Ads to post which viewers read and decide if they want to write …

Accounts Receivable Not rated yet
Hi again Kathy In the business that I work at, the owner purchases materials to make products to sale. Usually that's the process in a retail business. …

Please, I want you to give me guideline on how cash book for a company that doesn't base on sales will look like. Not rated yet
Question From Ask the Expert: The company I work for is a type that doesn't sell any goods but purchases product and stores it for a certain period …

Switching to all electronic invoice databases Not rated yet
I an the Accounts Payable Coordinator and we receive both paper invoices and electronic invoices. I would like to get rid of the storage of paper invoices. …

From Ask the Expert! What is cash flow and why so we prepare that statement? Not rated yet
Please guide me why do we prepare Indirect method cash flow and what type of business picture is shown in this format, and why do we use particular head …

tax filings Not rated yet
From Ask the Expert: I run a non profit corporation that's license exempt daycare and receive payment through a state program (childcare initiative). …

Financial Statements  Not rated yet
Hello Kathy, hope all is going well for you. Now to my question. For the retail business that I work for as the bookkeeper I have to create financial statements. …

Journal Entry Not rated yet
Question: Wages owed but not paid at Dec 31 was for $500 Is it: Wage Payable 500 Wage Expense (500) -------------------------------- …

I am a student with a question... Not rated yet
I want to know..what do you do if you are a payroll accountant for a small business and a friend asks you how much the hourly pay of another employee in …

How do I document retail losses on a 1120S form for a prior tax year? Not rated yet
I am completing prior year taxes for a small business that went out of business in 2009. I incorporated in 2005, opening my doors in November 2005. …

Buying a vehicle Not rated yet
If I have four stores and they each own their own truck, but one store needs a newer truck, can I purchase that truck and divide the expense between all …

question regarding reimbursement to attorneys for work perfomed Not rated yet
Question From ASK THE EXPERT: We split the receivables with our attorneys. If their client pays 1000, he gets 500 we keep 500. that part is pretty …

shogufa1@hotmail.com Not rated yet
From Ask the Expert: My husband and I have opened a small sign company in April this year. I want to take care of the accounting system myself because …

Working with Bank Statements Not rated yet
From Ask the Expert! Hi my name is David. I currently work for a small retail business. My job is to get the books up to date from the past two years …

Own & operate a kettlebell gym, how do I calculate my salary? Not rated yet
Jessie writes: I have been just taking what I need for personal bills, should I be more exact with my salary? ---------------------------------------------- …

monthly check to pay daily employees Not rated yet
How do I calculate daily pay for several employees from an account that pays monthly? ---------------------- If you're calculating a monthly pay, …

How do I pay my 14 year-old to do small record keeping in my business? Not rated yet
Here's a Submission from my Ask the Expert page: Jessica writes: I want to pay my 14 year old daughter for maintaining and recording receipts and …

How do you account for a loss in value of your Inventory items? Not rated yet
Capital assets depreciate over time. What is the equivalent for inventory/stock? Lets say you have 100 units and honestly expect to sell them all at the …

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General Ledger Question Not rated yet
Contact Me entry Demar from Jamaica writes: Where do assets go in the general ledger? If you're making up an actual General Ledger, with a ledger …

G/L Chart of Accounts Not rated yet
Brenda from Oklahoma writes: Where do I put tools we buy in the G/L Chart of Accounts Hi Brenda! I used to work for a Tool & Die company, and …

How many days do I have to submit the employee portion of 401(k) after each payroll? Not rated yet
Here's a Question from a reader: How many days do I have to submit the employee portion of the 401K after each payroll? I want to be sure that I am …

How many days do I have to submit the employee portion after each payroll? Not rated yet
How many days do I have to submit the employee portion after each payroll? I want to be sure that I am timely with the payments my employees are having …

What's the difference between a credit and a debit? Not rated yet
Chanty asks: "What is the difference between credit and debit?" ---------------------------------------------- Accounting is what we call double …

Accounting set up Not rated yet
Please, can you tell me how the chart of accounts is prepared? This question comes from my Ask the Expert page, and I want to share it here. The …

Account List Not rated yet
Ramesh asks: "I have small transport business please tell me which Account i want to maintain for Profit or loss in my Business." --------------------------------------- …

buying your own truck Not rated yet
I want to sell my truck to my company. Only issue is I still have a 25000 loan on the truck, and the fair market value is around 22000. Any ideas on how …

when posting a utility bill you just paid, do you add it to the balance in the ledger or subtract it from the balance? Not rated yet
when i pay my electric bill and post it to my utility expense ledger do i add the amount i paid to the expense balance or do i subtract it from the balance? …

small business bookeeping Not rated yet
Hi, I'm running a small business and need to set up a bookeeping system. It's a fairly simple operation where our clients pay us amounts by wire transfer. …

related accounts on cash receipts journal and cash disbursement journal Not rated yet
how should bank deposits and withdrawals be recorded in the cash receipts journal and cash disbursement journal? does cash deposits go to the cash disbursment …

balancing the books Not rated yet
im helping my sister with her bookeeping she has a reciept for 50 pounds but accidently added 54.70 in can i just add the 4.70 in on other money coming …

starting a small accounting business Not rated yet
hi, im currently completing my AAT qualification, i and a friend want to open a small accounting business (home-based), but neither of us have any accounting …

Payroll, W-2 and Health Insurance Payments Not rated yet
I am trying to create my W-2's via quickbooks. There is only 1 of me and I purchase my health insurance thru the company I own. My question is this - …

Asset sell Not rated yet
I own a S Corp which consists of 3 restaurants. I sold one and paid the bank off for the other 2 with part of the money I received from the sale. How do …

How do I post the start-up loan for the business I purchased? Not rated yet
This is odd...we got a Futures Development loan to purchase a business. We never actually received any funds, funds went directly to the old owner. …

How to create a Balance Sheet Not rated yet
Able writes: The person operating my accounting software last year disappeared with my Balance sheets, Profit and Loss statements,and no telling what …

How can I show a profit when I don't have any money in my account? Not rated yet
I use an accounting service, and they gave me my yearly financial statements which show a nice profit. The only trouble is I have to pay taxes on that, …

How do I get my customers to pay on time? Not rated yet
I run an auto repair shop out of my garage. I usually get paid when they pick up their car or truck, so that's no problem. But some businesses ask me to …

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