I started to use quickbooks.When I order something for inventory & then sale do I put it in expense or income?
3204
Above answer is just fine. I am answering this so the "expired" question can go into voting.
193028
Cost of Goods Sold \n= Selling Price - Gross Profit\n\nCost of Goods Sold \n= Opening Stock + Direct Expenses - Closing Stock\n\nNow since there is no stock, it would not be appropriate to think in terms of opening and closing stocks.\n\nDirect Expenses is a term relevant to an asset...\n\nAny expenditure that is incurred before brining the asset into usable condition is direct expenditure for the asset..\n\nSince in case of service industry we do not find direct expenses, it would not be possible to use the above ideas for ascertaining the cost of goods sold.\n\nSince there is no goods being sold, it would not be appropriate to use the term "cost of goods sold".\n\nIf one is to decide whether the business is profitable or not, the first figure to look at is gross profit, which gives the basic profit from the set of transactions related to trading activity.\n\nIf for a similar purpose, you intend to find the basic profit from a set of transactions that relate to the service activity, then we make a separate account to which we transfer all the incomes and expenses relating to that activity to ascertain a profit that is an equivalent of gross profit in trading activity.\n\nSome examples of accounts which reveal the profit from a set of transactions....\n\nrelated to consignments -- Consignment a/c\nrelated to joint ventures -- Joint Venture a/c\nrelated to branch -- Branch a/c\nrelated to hire purchase -- hire purchases a/c\n\nsimilarly \nrelated to a service  -- xxx service a/c\n\n\nhttp://www.futureaccountant.com/\n\nhttp://www.schoolingkids.com/
169275
I realize you are in a cash squeeze, but I would not trust my accounting records to freeware. Even though it may be a great program, you really have no real claim to support of the product, because its free.\n\nStick with quickbooks pro. Not that expensive and really easy to use.
73325
Yes, it's okay.  You just need a paper trail.  The rental business needs to make sure they use their tax id when purchasing.  This eliminates the sales tax for the purpose of resale.  That resale can either be retail or rental.
129230
Peachtree accounting has this feature, I use it, but it is so close to Quickbooks that it should have it as well.
329605
What is an accrual? \n\nWhen you pay a bill, the expense is recorded in the General Ledger; when you receive a payment for a service or good, the income is recorded in the General Ledger. At the end of each year, we need to make sure that expenses are recorded for all goods or services you have received during the year. We also need to make sure income is recorded for all goods or services you have provided during the year. There may be cases where you have not paid an invoice by June 30 for a good or service you received during the year. You may also have payments you have not yet received for a good or service you provided this year. In these cases, we need to process a journal voucher to record an “accrual” for the unpaid invoice and the outstanding income. \n\nIn short, accruals allow expenses to be reported when incurred, not paid, and income to be reported when it is earned, not received. \n\nAs examples: \n• A department orders and receives tow computers at the end of June 2004. However, the bill is not received Until July and is not processed until August. Because the computers were received in FY2004, an accrual journal for these expenses should be processed. This accrual would charge the appropriate 33-digit expense coding and would credit the balance sheet Accounts Payable liability. \n• A department provides services to an outside institution in June 2004, but doesn’t receive payment from the customer until July. Because the service was provided in FY2004, an accrual journal for this income should be processed. This accrual would credit the appropriate 33-digit income coding and would debit the balance sheet Accounts Receivable coding. \nThe following are the general rules regarding AP (expense) accruals: \n• Accounts payable accruals should be made for items where a good or service has been received in the current fiscal year but will not be paid for prior to year-end. This includes items for which an invoice has been received but not paid, as well as items for which no invoice has yet been received. If no invoice has been received, then the department should process the accrual based either upon the known cost or an estimated cost if one can reasonably be predicted. Any known costs that are for a minimum of $1000 must be accrued. It is preferable that items less than $1000 also be accrued, but it is not mandatory. \n• Departments should not delay processing these expenses because of lack of funding. Departments should consult with their financial office if there is a funding issue.\n------------------------------------------------------------\nA prepayment is a payment in advance of the period to which it pertains. Let's take the above example a stage further. At the 1st of April the rent for the period 1st April to 30th June becomes due and this is paid (£300 again), exactly on time. This is only a prepayment because Jim Sayers, the business owner, has decided that he wants the firms' financial year to run from 1st June to 31st May each year. So, at midnight on 31st May, he has paid one months rent in advance for next year (this being the rent for June). A look at the diagram below might help:\n\nDate 1 Jan 31 1 Feb 28 1 Mar 31 1 Apr 30 1 May 31 1 Jun 30 \nPayments 1st: £300     1st : £300   Prepayment \nPeriod covered by payment Whole period Whole period \nFinancial year This financial year Next financial year \n\nAt the end of the year, the 'profit and loss account' is drawn-up, and after all of this the rent account will look as follows:\n\nRENT \n   Debits £   Credits £ \n1 1 Bank 300       \n1 4 Bank 300 31 5 balance c/d 600 \n    600     600 \n31 5 balance b/d 600 31 5 to profit and loss a/c 500 \n    ___ 31 5 balance c/d 100 \n    600     600 \n1 6 balance b/d 100       \n---------------------------------------------------------\nCapital expenditures ("CAPEX") are expenditures used by a company to acquire or upgrade physical assets such as equipment, property,
211971
If you get quick books it will do it for you. You just enter in your expenses and income.
865121
No.  The other way around.\n\nCredit closing stock $2,200\nDebit an operating expense $2,200 - or accrued receivables if the person drawing down the stocks is going to owe the company.\n\nRemember debiting an asset means MORE of the asset, not less. "Drawings" sounds like a made up liability or expense.  It's an expense if the person doesn't owe it back.  It's a accrued receivable if they owe it back (and it's accrued receivable instead of accounts payable because it isn't invoiced).
50403
That all depends.  How big is your business? How many transactions do you do daily/weekly?  It can help you to be organized and the new software suites are very user friendly but sometimes you don't need it.  For me an expense journal, bag O' receipts and a simple A/P ledger is all I need but I am in staffing so if I do 10 transactions a year, I am in great shape.  If you do go the computerized route, just be sure to understand the program and back it up often.
1040413
Enter the account that you use to track discounts you give to customers. You can use either an expense account or an income account. When an income account tracks discounts on sales, the account is often called a "contra-income" account.\n\nSelect the tax code for this item.
1057849
(Since you're talking about the IRS, I must put up a disclaimer that this advice is worth what you paid for it.  Nothing.)\n\nIf you have records showing how much you paid for the stock when you bought it, the amount you paid is your cost basis.
142379
depends on the method, but probably the cost.  That way if you decide to discount your inventory to get rid of it, you will know how much you are really losing and not just how much less you are selling it for.
149628
Since you are selling Mary Kay you can file as a business owner. You can write off expenses like if you use part of your home to store or place orders in a particular area. You can even write off part of your rent, and utilities. The gas and mileage you drive to pick up the supplies if you are required to pick them up.
288001
Part one of the Sch C is for you income you received for your business.\nPart two is for expenses for the business\nPart three is for cost of good sold. If you use a Inventory you need to do this section.\nPart four is vehicle use\nPart five is other expense that you couldn't use on part two. After you do this part you total it up and put it on Part two line 27.
86818
Enter your gross sales, retail sales, on line 1, where it says gross reciepts or sales.  Then figure the cost to you of what you sold, less returns. and thats your gross profit.  Then figure your other expenses in the next section.  Since, I believe Avon reps buy from the company only what the customers order, you didnt have an inventory.
432377
Cost of goods sold is the value of the asset "Goods" that you have sold.\n\nThere is a principle for valuation of an asset which says "The value of an asset includes all the expenses incurred before brining the asset into usable condition"\n\nSince "Goods" is an asset (remember it is shown in the balance sheet) the same principle applies to its valuation.\n\nDirect Expenses\nAny expenditure that goes into the value of an asset is direct expenditure.\n\nTherefore, the value of goods includes..cost of goods and direct expenses.\n\nSay if you have purchased goods worth 200,000 and incurred direct expenses to the extent of 20,000 the value of goods that you have purchased would be 2,20,000.\n\n\nNow, you have an opening stock whose value is 40,000.\nYou purchased goods whose value is 220,000\nYou have goods remaining with you whose value is 20,000\n\nWhat would be the value of the goods you have sold..\n\n40,000 + 220,000 - 20,000 = 240,000 isn't it.\n\nWrite this down as a formula.\nCost of Goods Sold\n= Value of Opening Stock \n....+ Value of Goods purchased\n....- Value of Closing Stock \n\nExpanding Value of goods purchased we can write\n\nC of GS = OS + Purchases + Direct Expenses - CS\n\nThere is another way you can ascertain Cost of Goods sold\n\nGross Profit = Sales - Cost of Goods Sold\n==> Cost of Goods Sold = Sales - Gross Profit\n\n\nhttp://www.futureaccountant.com/accounting-process/
1181447
accural accounting will show that you are recognizing the expense and paying it when it is due. Take for example employee's pay. Your pay period runs sunday to sunday. Your quarter ends on a Wednesday. This must be recognized in your journal and ledger as it won't be on the employee's check. It must be explained so you will use accural accounting.\ncash accounting is like sales with cash when something is sold something is paid for. Record sales journalize then post.\nfor financial statements use accrual accounting as there will be areas that run beyond the fiscal period yet have to adhere to the GAAP