Thanks, Henry Edwards33, I really appreciate that—it’s definitely my favorite way to do things. I think I mentioned in an earlier post that this was exactly how I wanted to handle it, and well, here we go. I'm actually doing it. Honestly, the whole idea of a cancellation just doesn't sit right with me.
Keith Martinez5 and I are about to lose our minds.
I mean, the advisors over at the IRS don't have a clue what they're talking about anyway.
I’d love to just group two identical responses together to make things easier, but apparently, that's not an option.
Anyway, I got a reply from my accounting firm yesterday that actually makes some sense—they've been in business for over 20 years, so they know their stuff:
They told me I should just stornirati those unpaid invoices. Since I'm running a small business, if I haven't paid them, I haven't collected any sales tax either.
What do you veterans think? Just a heads-up, we're talking income accounting here, not tax law.
I’ve decided I’m just going to cut my losses. I'll write off those unpaid invoices, settle the sales tax, and call it a day. I don't want this hanging over my head, and honestly, I really can't be bothered to file paperwork for money that’s never actually hitting my bank account.
Whatever, it’s just the cost of doing business. Like they say in those business school textbooks: you haven't actually made the sale until the cash is in the bag. My bad.
Seriously though, do unpaid invoices actually count as receipts? And am I supposed to be paying sales tax on them? Since 2012, I’ve been sitting on a claim for about $150 from this small business that shut down back in 2013. We never filed a lawsuit or anything; it’s just this lingering debt hanging over my head. I really want to clear this off the books. If I don't even have to list it under receipts—well, that would be amazing. But I really need to be sure.
Am I basically just doing the most basic math on the planet and then maybe tweaking things if I catch a mistake... and that's it?
Basically, I need to know if this works like a standard sales tax calculation (just totaling everything up), or if it's strictly about the specific revenue categories for the 12/15 period.
Honestly, nothing could surprise me at this point, but I figured I'd ask before I panic and send off the form before you guys have a chance to teach me how to actually do this properly. 😁
Morning! Apis and Devil... are you guys actually trying to give me a heart attack here?!
What kind of "settlement" are we even talking about regarding these pay bumps?
I mean, how is this anything other than the same old average salary with those same annoying corporate multipliers we've always had—except now we're just footing the bill for the bosses' perks ourselves?
The devil is clearly in the fine print of these changes. Man, I seriously hate working in the private sector.
Look, cosmictinker24, for real though, where can I actually find a specific example for sole proprietors? I need to see what I'm supposed to be typing in here. Is it basically the same deal as filing payroll tax and health insurance contributions for an employee, just adding in those estimated tax prepayments from my income?
So, basically, people making income are going to be coughing up a little more than they did back in 2015. ($7.50).
Based on what the text says, the calculation base would look like $1741, which means:
Social Security I: 783.61 Social Security II: 261.20 Medicare: 783.61 Other: 26.12 Employment Tax: 88.81
I might have botched a number somewhere, so my bad on that. What I’m actually sweating over is that IRS filing for income earners. When does it happen? How does it work? And what if we're late on the payment? Are we going to be buried under a mountain of paperwork, or what the hell?
When I'm broke, I pay in tiny increments. Am I going to have to send my IRS filings in tiny little pieces too?
Is there anywhere I can read up on this to get the full story?
amberbadger17 said:I feel like this might have been asked before, but...
So, if a Small Business owner uses a business credit card that’s set up as its own separate account, and the credit card company just automatically pulls the payments from the business checking account on whatever date they feel like—how am I supposed to handle the bookkeeping if I buy something on an installment plan?
When and how do I actually record this?
Do I just book it all at once and call it a cash purchase?
Or should I be closing out the account in installments and claiming the sales tax deduction as I go?
Thanks!
Does anyone actually know this? Help me out here, please...🙂
I feel like this might have been asked before, but...
So, if a Small Business owner uses a business credit card that’s set up as its own separate account, and the credit card company just automatically pulls the payments from the business checking account on whatever date they feel like—how am I supposed to handle the bookkeeping if I buy something on an installment plan?
When and how do I actually record this?
Do I just book it all at once and call it a cash purchase?
Or should I be closing out the account in installments and claiming the sales tax deduction as I go?
So, I’m wrestling with this sales tax order—specifically the one labeled 68 1708-oib—and the system just flat-out refuses to process it. It keeps rejecting the whole thing. Has anyone else run into this lately, or did they change some random rule behind my back without telling me? Thanks.
Not even close. Sales tax isn't an expense. Look, if you didn't pull it out of your incoming revenue in the first place, you can just log it as an expense once it’s actually paid, and then everything offsets perfectly. It won't show up as income or an expense, and honestly, if an auditor ever comes knocking, you'll have a super easy time explaining why you booked it that way.
I’m honestly crossing my fingers that this means those of us running our own shows don't have to scramble for a license just yet. And if we actually do have to get one, what's the deadline for getting it sorted?
ruggedheron13;55515154 said:So, this small business owner just set up shop and dumped a bunch of cash into his workspace. He did all the electrical work himself. Since he paid for most of the materials upfront with cash, looking at the receipts, I feel like I could just dump it all straight into KPIs right now. But honestly, those installs are going to last him years. When I'm doing the books, can I just categorize all those receipts as expenses under Section 22 (even if some are around $100) and then just total them up to list as long-term assets on the tax return so I can depreciate them over time?
Look, you can go that route or you don't have to on the tax return. It’s your call. Personally? I just write those things off immediately.
Look, they aren't the same thing. 🙂 You put everything you’ve actually collected into your receipt book, but that other one—the sales and accounts receivable ledger—is specifically for tracking open items (stuff that hasn't been paid yet) that go through a bank transfer. The assumption is that anything else was handled in cash right then and there. 🙂
I’m sure they’ll code this whole mess of questions so it makes life easier for the people stuck drowning in endless, soul-crushing paperwork, but... what's actually the point? Seriously—is tracking daily and weekly breaks really necessary? I get it, the person who wrote the regulations was probably thinking about "control" and "protecting worker rights," but I honestly wonder if anyone in charge will ever stop adding homework to our plates. Will one single person tasked with making these rules actually sit down and ask how to cut red tape instead of forcing everyone just to look for the nearest exit?
Look, we'll adapt. It's fine. But has anyone considered the poor accounting firms forced to handle all this for small businesses? Are they supposed to hunt down employers and employees just to chase down piles of paper? From what I can see, they still haven't even figured out how to sync payroll with the IRS, let alone deal with whatever headache is coming our way after July 1st.
Maybe I'm just being dramatic, but keeping track of basic business stuff has never felt this stressful.
so, the forests are officially saved. from here on out, I’m strictly printing Promethean stuff—unless those people I'm terrified of come knocking, then I guess I'll just scrap everything and start over.