Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
Hey,
I need some help here. My company used to outsource all our bookkeeping, but they just cut ties with us, so now I’m stuck handling everything myself. It's a mess. When the government sends us money—like if they overpay us and send back a refund, or if they give us an advance payment for a contract—do I just book that as a customer payment on account 1200? Also, regarding an insurance premium refund, I’m thinking that counts as miscellaneous income under 7855, but am I right? Because let's be real, not every single cent that hits the bank account is actually revenue. How am I supposed to categorize these incoming transfers?
I need some help here. My company used to outsource all our bookkeeping, but they just cut ties with us, so now I’m stuck handling everything myself. It's a mess. When the government sends us money—like if they overpay us and send back a refund, or if they give us an advance payment for a contract—do I just book that as a customer payment on account 1200? Also, regarding an insurance premium refund, I’m thinking that counts as miscellaneous income under 7855, but am I right? Because let's be real, not every single cent that hits the bank account is actually revenue. How am I supposed to categorize these incoming transfers?