Posts by Henry Edwards33

Drew Allen77 said:If you're bringing in an income, then by law, you have to register for sales tax...

Not necessarily. ☕

Nathan Fox8 said:Hey, how do you handle loans within an LLC?
If the owner lends money to the business or vice versa, is there a hard requirement to actually pay those back?
And what happens to any outstanding loans if the business shuts down?

It’s nothing to worry about. It's basically just moving money from one pocket to another. Labeling a transfer as a "loan repayment" is just a way to make sense of the activity on your business bank statement.

neonsurfer13 said:If you're a small business owner registered for sales tax, you're required to put the R2 code on your invoice along with the note "Tax calculated on cash basis."
But what happens when I need to send out an invoice that gives the client, say, a 30-day window to pay?
It’s always the same story with these government contracts. I have to issue the invoice first just to get that 30-day countdown started.
The problem is, the payment hasn't actually hit my account yet, but the invoice is already out the door.
How am I supposed to follow the rules and include that specific note without running into a legal headache?

The phrase "tax calculated on payments received" refers to when you actually owe the sales tax to the IRS—it’s due in the month the payment clears. It has nothing to do with the moment you physically print and send the invoice.

You report to the IRS using the standard tax facts form, and you have to notify the Federal Reserve once monthly if transactions exceed $100,000—though you should probably double-check that specific threshold.

neonsurfer13 said:Can a small business owner take a split payment for a single item? Like, if the customer wants to pay part of it via direct transfer and then put the rest on their credit card using an installment plan?
If I remember correctly, you'd probably have to issue two separate receipts—one official one for the tax man and one non-fiscally registered one. But is it actually legal to have one single purchase for one product split across two different receipts?

You can absolutely record a bank transfer as part of the taxed transaction. You should probably check in with your POS software developer to see how to split cash or transfers so that your register stays perfectly synced with the IRS requirements.

It could go either way. Once you make the call to write it off, it hits both the KPI and the sales tax.

Keith Martinez5 said:Hi everyone,
I'm looking at picking up some tools from Amazon.com, but I've run into a bit of a snag—it looks like they won't let me pay directly from my business checking account; it's strictly PayPal or something similar. Since I'm running this as a small business, is it okay if I just use my personal credit card for the purchase and then record it in my books as a cash expense? I'd love to hear your thoughts on this! Thanks for the help!

Yeah, you can.

It usually takes them a little while to process account transfers, and they typically handle that batch work overnight. As long as the transfer hasn't been officially rejected, just hang tight and be patient.

Scott Robinson17 said:I just finished filling out the CDC form, but the system keeps throwing these errors at me:
Data point 4.3.1., Total, column 7: The amount doesn't match the difference between total income and total loss.
Table 4.3.1., Table, column 8: The amount doesn't match the sum of the amounts per row, column 8.
Data point 4.3.3., column 7: The amount doesn't match the difference between the total income in field 4.3.1. column 7 minus the carried-over loss in field 4.3.2.
Data point 4.3.3., column 8: The entered amount doesn't match the amount under Total 4.3.1., column 8.
Anyone have any clue how to fix this mess?

Have you tried double-checking the math in the specific fields where the error popped up? It’s basically just an Excel spreadsheet telling you which sums are off. Just work through them one by one. 😉

neonsurfer13 said:So, I’ve run into a bit of a mess. I bought some stuff from a company over in the European Union, but they slapped a 25% sales tax on my bill.
Since they have an American tax ID, I guess they think they're legally allowed to charge me that much.

Also, just a heads-up: I used my personal credit card for this, even though the invoice was made out to my business. Should I just mark this down as a cash payment?

How am I supposed to log an invoice like this in my books? What category of accounts payable does this actually fall under?

If they didn't have your business tax ID on file, they were required to charge you the sales tax. You just record it as a standard accounts payable entry and list the payment method as cash. We can technically operate and acquire goods for up to $23333 without needing a registered tax ID.

When you look at the bottom line, obviously, that VAT isn't actually being funneled back into public spending.

Give the NYSE certificate a shot 😉
The last time they tried to "fix" the IRS portal, it was a total disaster 😁

neonsurfer13 said:I mean, that only works if you're just taking a partial amount, right? But what happens if the entire thing is just one massive down payment?
Can someone give me a bit more detail here, please?

A down payment can definitely be 100% of the total amount.😉

Everyone sees things through their own lens.

Since the Department of the Treasury, the U.S. Chamber of Commerce, the National Association of Manufacturers, and all those consulting firms are supposedly all on the same page regarding scrapping licensing... Are you telling me they're all just fundamentally out of sync?

Fine, let's say they are. But what about the mountain of studies out there—and I'm sure you don't need links since you know how to use Google—and the fact that the European Union recommended against implementing licensing in the first place? And we're talking about a bunch of hairdressers making these calls, right?

Man, those hairdressers certainly have some clout. 😂

Also, leaning on personal insults is a bit pathetic. Work on that; I know you can do better. 😉

urbanwalker72 said:The focus here seems to be misdirected. Instead of what we see now, there should be an advocacy for a voluntary certification path modeled after the CPA. Such a designation would empower competent accountants with the authority to perform audits up to a certain level of complexity or revenue threshold. That is where true value lies. This shouldn't be a mandate, as it requires significant prerequisite knowledge and practical experience, but it would certainly allow certificate holders to command much higher fees for their expertise.

I actually had this exact same thought about a year and a half ago.🙂

It is hard to imagine what they would even certify, given that they lack the internal expertise to conduct the examinations themselves.🤣

It will likely be quite some time before we see the IRS handing out EA certificates.

We’re fighting for straightforward, clear regulations, consistency within the IRS, cutting through the red tape, and protecting the interests of accountants... It seems like a solid direction to me. 😉
Voluntary certification hasn't ever been the issue, though honestly, I think it's a lost cause under current conditions. If you really want to make an impact, you should advocate for mandatory training courses for new entrepreneurs; they're the ones who actually need to understand the laws they're operating under from day one. But that’s a whole different, massive rabbit hole.

What exactly are they going to certify? They don't even know themselves, let alone who would be qualified to proctor the exams. 🤣

It'll be a long time before we see the IRS handing out EA certificates around here.

You managed to sum up the absurdity and the tragedy of our entire system in just two sentences.

urbanwalker72 said:🤣 I’ve already told you that getting certified isn't going to be your saving grace. I see firsthand how hard a truly talented accountant works for peanuts. Mine is incredibly knowledgeable and pulls massive hours, yet he doesn't earn anywhere near what he deserves. This is despite him having a degree from a top business school, holding his CPA and CFE credentials, and sinking countless hours and dollars into continuous education...

My point is this: the reason you can't command the fees you deserve isn't because of "waitresses and hairdressers" as you put it, but because there is zero oversight. Everything just slides by. And if everything passes without scrutiny, why would anyone bother paying for high-end accounting, tax, or financial advice?

Not everyone is going to see eye to eye. While mandatory certification feels a bit absurd here, in functional countries, people pursue these credentials voluntarily if they actually intend to be serious about the profession. Without certification, you simply lack credibility. In the USA, sure, you can keep books, but if you aren't a CPA, you aren't taken seriously—who would hire you?

The gap between a certified accountant and an auditor here is far too wide, and auditors have exploited that divide to their own advantage. In the USA, a CPA has the authority to perform audits, which proves that the exam is anything but trivial.

On top of that, you have access to the CFE, CFM, CMA, and other specialized designations, plus there is the EA—a credential issued by the IRS that guarantees, from their perspective, that you are a true tax expert.

Just imagine if our version of the IRS started handing out certifications like candy... 🤣

Honestly, I agree with the sentiment, but trying to force this into our system is just madness.

Voluntary licensing is great in theory, but as you pointed out, it carries zero weight in our current setup. On the flip side, if we went with the proposed licensing model, it would basically mean shuttering a massive number of accounting firms overnight. Unfortunately, people haven't taken the time to really look at what that model entails—we're talking oversight from the Chamber, fixed price lists, 160 hours of mandatory annual education, and so on.

You need to build a sustainable foundation first; you don't start by trying to "polish" a broken system with licenses and fancy authorities.

Just imagine the IRS handing out certifications here. 🤣

The worst part is, I actually had the exact same thought about a year and a half ago.🙂

There’s nothing more pathetic than this kind of nonsense. It’s honestly shameful how you can just spit on so many skilled, honest, and brilliant professionals like that.
I, for one, am proud that we stood together and that I had the chance to meet so many capable and outstanding people along the way.

We’ve got an association, a president, a vice president who are all incredibly sharp, hands-on, and actually get things done—plus a solid council backing them up.
The first hurdle is behind us; now it's time to double down and keep fighting the good fight. 😉

Only 113 people signed up. I really hope they actually show up, but honestly, this is a total joke.
I guess it’s just fine with everyone letting someone else call all the shots.

Plenary Session

NOTICE, August 27, 2018

Dear members of the AICPA,

Pursuant to Article 52 of the U.S. Chamber of Commerce Bylaws, a plenary session of the AICPA is being convened and will take place

on Thursday, September 27, at 12:00 PM
at the Westin Chicago Crystal Hall,
Chicago, America, ground floor
(Mandatory registration for all attendees begins at 11:00 AM.)

We invite all U.S. Chamber of Commerce members registered under the professional, scientific, and technical services sector—specifically Section 69 (Legal and Accounting Services), Group 69.2 (Accounting, Bookkeeping, and Auditing; Tax Advisory); Class 69.20 (Accounting, Bookkeeping, and Auditing) according to the National Classification of Activities—to attend this session.

To register, please complete the online registration form provided below no later than Friday, September 21 (by 12:00 PM).

The proposed AGENDA for the session is as follows:

Adoption of the association bylaws
Election of members to the Association Council
Election of the President, Vice President, and Secretary of the Association
Miscellaneous items
Please keep an eye on this page, as we will be posting all major updates here.

If you have any questions, please send them to udruzenjeracunovodja@hgk.hr.

Anyone actually planning on showing up? 🎉

Nah, you're still taxpayers; you just aren't registered in the sales tax system, so it's handled as a standard B2B transaction.