Posts by ruggedheron13

I’ve been watching a lot of sports lately, and it’s wild how much weight we put on these winning or losing streaks. One week a team is absolutely untouchable, playing like they're on a different planet, and the next, they just stumble and everything falls apart.

It honestly feels like we try to find patterns where there might not be any. You see a team tear through a road trip and everyone starts talking about "momentum" or "destiny," but is it really anything more than just a statistical anomaly? I remember back in my college days, our local team went on this insane run that felt like a miracle, but looking back, it felt like they just got lucky with a few bad calls and some easy scheduling.

I find myself getting more sucked into the "can they keep it going?" narrative than actually watching the game itself. It’s like the tension comes from the possibility of the bubble bursting rather than the actual skill on the field.

Do you guys think these long runs are actually a sign of a superior team, or is it just a temporary peak before the inevitable crash?

So, I’ve been thinking about this one small business owner I know... He was leasing a commercial space and put a significant amount of money into the build-out and improvements. He was booking those costs as direct improvements, but then life happened—he moved out before he could fully depreciate the investment. Now he's left wondering... what happens to that remaining book value?

Olivia Cruz86 said:Thanks so much!
Can I pick your brain for one more thing? Since we track our Iraq accounts based on when the cash actually hits, is it cool if an invoice dated 12/31/2014—with a due date of 1/15/2015—doesn't even show up in the system until it's actually paid in 2015? Basically, it wouldn't be entered into the Iraq records during 2014 at all.

I'm not sure if you're registered for sales tax or not... I'm thinking about that extreme scenario where you aren't in the system yet, but you're right on the edge of the threshold, and this specific invoice would push you over into being required to register. If that's not an issue, then naturally, there's no problem recording it now in 201x. A receipt technically happens when the bill is actually settled. The fact that it wasn't logged last year, but rather this year, shouldn't be a dealbreaker... unless you're facing that specific tax registration situation mentioned before.

Olivia Cruz86 said:Thanks, ruggedheron13!!
But what happens if, say, someone pays off an old invoice from 2011 while we're sitting in 2015?

No worries at all. That specific invoice is just going to keep popping up in the software as unpaid. It’ll stay right there on your radar until you properly close out and reopen your books at every opening balance phase... until it's finally settled. Besides, if you're running a small business, you're required to maintain an Accounts Receivable and Payable ledger anyway. You have to track every single outstanding bill and uncollected payment through that system...

Olivia Cruz86 said:Ugh, and how the heck am I even supposed to do that transfer? I'm still basically a total newbie with this software—I definitely didn't carry anything over yet... anyone out there who actually knows what they're doing care to help me out?

Here’s how you run the year-end closing: pick last year's ledger, look for the "Tools" box on the right side, and head into the year-end close section. Just select date 12/31/201x and a new ledger will pop up. Since we're talking about a sole proprietorship, the KPI stays empty, but the system handles the transfer of unpaid invoices automatically. Once that's done, you can jump into any specific invoice and close it out. In your situation, I wouldn't bother re-entering that 2014 invoice. If you do, you'll just be hitting your revenue account again, which messes up your actual numbers when you're trying to check your sales tax threshold. It's better to just go through the reception module and record the payment manually...

Olivia Cruz86 said:Hey everyone!

So, I’ve got this outgoing invoice from back during the ISIS era—it was logged in my QuickBooks system then, but the actual payment didn't hit until 2015 (using Synesis software)
Here’s the headache: if I jump back into the 2014 files and try to mark it as paid on, say, September 17, 2015, it just won't show up in my New York City reports for 2015.
Does this mean I have to manually re-enter the whole damn invoice into the 2015 books and set the payment date to 9/17/2015 just so the system actually recognizes it in the 2015 records??
Also, quick question—and yeah, I know, I'm totally new to this and probably asking something obvious—but when I'm entering an invoice into the system at the very top, am I supposed to put the payment date or the actual issuance date for every single individual invoice?

Thanks a bunch

When you opened your 2015 books, did you carry over the closing balances from 2014? If you did, that invoice should have carried over with a January 1st date, and now you can just go in and update the payment method. Or did you start the new year with a completely clean slate?

A small business owner just set up shop and put some serious money into his workspace. He’s already finished the electrical wiring. Now, I’m looking at all these cash receipts for materials he bought... strictly speaking, based on the invoices, I could just dump them straight into the KPIs right now. But the thing is, this isn't just consumable stuff; he’s built an electrical system that’s going to last him for years. Is it okay if, when I'm recording these, I classify them as expenses under Section 22—even though a few of them are around $100—and then just total them all up? My plan was to list the whole amount as long-term assets on the DI form so we can depreciate them over time...

Brenda Chase3 said:Personally, I run everything through the bank because at the end of the day, your summary report will show exactly $80.00 as a bank transfer.
Essentially, $33 total expenditure via bank transfer -$6.75 expenditure via bank transfer = $80.00 in bank transfers; that's what you'll see reflected in your $27 summary.

Wait, so the gross amount won't actually show up in my summary? It'll just show $27?

Brenda Chase3 said:1. The vendor should have issued either a credit memo or a formal reversal for that specific amount. You can close it out by running the AP entry into a negative balance. Then, at year-end, when you're explaining discrepancies between your sales tax summaries and the actual deposits hitting your Chase account, you'll just provide the statement showing that the funds were a refund for overpayment rather than new revenue.

2. Handle the credit memo by running the AP entry into a negative. Personally, I usually settle these through a bank transfer since that's how the money actually moved. Essentially, you'll end up with a positive balance on, say, $33, a negative credit memo of $6.75, and once you offset them both, it reflects the actual payment made through your business checking account $27.

Regarding Part 2... I was thinking about how we actually close out an approval and handle that specific portion of the bill once it's been cleared. Whether we settle it with cash on hand or just run it through a business checking account... it’s always one of those little logistical hurdles. For instance, if I'm sitting here looking at an invoice right now... $33 And then there’s that whole business with getting approval for the account... everything just seems to be hanging in the balance right now... $6.75I'll just settle the remaining balance via wire transfer... I'm logging the $100.00 payment through the business checking account, and then we'll just wait on the IRS to approve the deficit... $6.75 I’ll just handle the payroll through QuickBooks... It leaves me with that one remaining expense for wages via QuickBooks... $27I’m thinking about tweaking the layout... maybe so that the option for PayPal pops up right away during checkout... just to make things smoother... $27So, regarding the remaining balance on the account... I was thinking, would it be best to just book that as an in-kind credit for the exact same amount? It seems like the cleanest way to handle it all... if that makes sense...

I could really use some help here... does anyone know the proper way to close out an Unrecoverable Error...

So, I was thinking about this little scenario... A small business owner goes in, pays cash for some retail goods, then decides they don't need everything and brings part of it back for a refund. It’s one of those little accounting puzzles that makes you pause for a second... How should I handle the entry? Should I record the return as a negative amount against the original purchase, or just treat it as a separate cash receipt... I'm weighing my options here...

So, I’ve got this situation with a cashless account, and we actually received an approval for the invoice. The difference was settled via a standard bank transfer, but now there's still this outstanding amount sitting there—the part we originally got the green light for. How should I handle the bookkeeping on this one? Should I be recording the accounts payable in the red, or mark it as a payment in kind, or just straight up as a wire transfer... I'm a bit stuck... Thanks.

Henry Edwards33 said:Under the current Tax Law, they aren't covered by Section 25, subsection 11 regarding individual income.

11. Late payment interest resulting from overdue public obligations (such as income tax, VAT, or Social Security contributions) isn't considered a deductible expense.

Thanks!

Henry Edwards33 said:Interest paid on payroll taxes isn't considered a deductible expense for small business owners.

Has anyone dealt with an audit regarding interest lately? I'm getting mixed signals everywhere... one person tells me it's a valid deduction, while another says it's a no-go. Apparently, it’s fine for corporations, but doesn't count for small business owners? Just trying to get some clarity here...

Are the late interest charges on my tax card considered a tax-deductible expense?

shadowwalker79 said:Basically, anything backed up by actual paperwork can pass.😉
Retail, huh? So who was handling the purchase orders or running the inventory counts then? And this whole thing about the receipts doesn't make sense to me—by law, they're required to issue them. If everything was invoiced properly, why is there even a struggle with turning in the receipts? 😕

It’s not an issue with the suppliers. It’s more about the business owner failing to keep track of their own records. There isn't any inventory to speak of, either. The business wrapped things up before the summer hit and just stopped operating. Now, I'm basically just trying to book some entries so there's at least a paper trail to close everything out for the final filing...🙂

rowdyhawk25 said:Why 30%? And whose name are the utilities actually under?

It falls on the homeowner... since the business is registered at that same address.

unicom said:The liability for 2013 still stands, you just stop recording any prepayments for 2014.

Got it, thanks. Quick follow-up though... what about utility bills? Can I just claim 30% of the total amount? My issue is that I don't have physical receipts for everything, even though the bank statements clearly show the payments went through. Is it okay to just take 30% based on what's visible on my bank transfers, or am I strictly required to provide an actual invoice?