Posts by silvertrucker9

Henry Edwards33 said:It could go either way. Once you make the call to write it off, it hits both the KPI and the sales tax.

Thanks👍👍👍.

Hello everyone!
I’m reaching out because I could really use some collective wisdom regarding bad debt write-offs. I’m currently dealing with several unpaid invoices, and since they’ve all been recorded as revenue, I’ve already been paying sales tax on them—with the exception of those covered under PPO. The part that’s tripping me up is how to handle the sales tax aspect. If I decide to write off these receivables in 2020, would I need to go back and file an amended sales tax return for that period? Or is it better to perform the write-off during this 2021 fiscal year and just reflect it in my next scheduled filing?

Thanks in advance for any insight you can provide. Best regards to you all...

Hi everyone,

I have a quick question regarding tax calculations. In a situation where the total annual personal deduction actually exceeds the calculated annual income, how should the monthly withholdings be determined? Specifically, is there a particular way to report this under section 9.7.2. on the tax return?
Thanks.
Best regards,

Jessica Gonzalez30 said:Sorry about that! I totally lost my train of thought and forgot for a second that I'm filing under individual income tax. As soon as I see the word "post" in my head, I immediately start thinking about account ledgers 🕺
Ali Apis responded...😉

I really appreciate the help from both the FBI and Ladd...🙂 now I'm just waiting to hear back from my aunt 😛 over at the IRS...

Best regards,

Jessica Gonzalez30 said:Honestly, just book it in the new year and call it a day.
Unless we're talking about a massive expense, that is.
If it's a big one, I usually handle it through a journal entry like this:
/2200
1408/
4xxx/
And then, in January, I'll run it through the subledger and just record it as:
/1408
140/

I appreciate the response, but my business isn't subject to corporate income tax, so the standard entry on these accounts doesn't quite work for me... the total amount on the invoice is $2500, which means I really need the expense to fall within the 2016 fiscal year. Plus, I'd have to figure out if an amended sales tax return is even possible in this situation...

Good evening, everyone!
I’ve run into a bit of a situation. I realized I missed recording an invoice from December, which means the sales tax amount wasn't included in our VAT return for the last quarter. Now I'm feeling a little foolish, but I'm trying to figure out the best way to fix this. Can I simply record the invoice backdated to December and then file an amended return for the final quarter? I need to make sure both the tax credit and the actual expense are properly accounted for.
Thanks for any help.

Dear fellow members,

I was wondering if you might be able to help me clear up a few things. I’m currently weighing the pros and cons of switching my business structure over to a corporate income tax model, and I have run into a few points of uncertainty regarding how everything works under that setup. Specifically, I am curious about whether it is still possible to withdraw cash from the business account without providing specific documentation for every withdrawal. Additionally, I’m trying to understand the implications for payroll taxes—specifically, whether there is still a requirement to pay out an owner's salary to cover social security contributions, and if so, what the standard accounting procedure looks like for those entries.
Thank you.

Ryan Rogers4 said:If you're operating as a sole proprietorship on a cash basis, basically everything you pay for counts as an expense—except for things like owner draws.
Since you're buying raw materials to create a finished good, you definitely need to keep material logs (like inventory cards). And if you end up making finished products that sit in stock, you'll need to track those as inventory too.

Thanks so much for the explanation.👍It’s all starting to click now. Given that my income has grown quite a bit lately, I was wondering if there are any legitimate ways to lower my taxable earnings. I'm aware of things like accelerated depreciation or perhaps adding assets to my business ledger—I believe that's an option, if I remember correctly—but are there any other strategies for reducing my net income?🙄
Thanks in advance...

Hi everyone, I was hoping someone might be able to lend me a hand with a quick accounting question. I’m feeling a little stuck on how to properly handle our books for a recent shift in our business model. Essentially, when we purchase the raw materials used to create a finished product that eventually goes to a customer, am I simply recording the material purchases as expenses and keeping a log of what gets used up? Or is there more to the equation regarding what actually counts as an expense for those consumed materials? I'm also wondering if there's additional record-keeping I should be doing beyond just tracking usage. To give you some context, we run a small construction services firm here in the States. We’ve recently expanded into a new area where, instead of just buying pre-made components to install, we’re manufacturing them ourselves. We use most of what we make for our installations, but we also produce a small amount specifically to sell as standalone products. This whole transition has left me a bit foggy on the specifics of the workflow. If anyone could clarify this for me, I would truly appreciate it. Thank you!