Author: David J Hoare MSA
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Bookkeeping – Recurring Entries (Lesson 65)
Every day bills arrive from vendors that are mere repetition like the electric or phone bill. They basically recur every so often (mostly monthly).
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Bookkeeping – Charitable Giving (Lesson 64)
Many small business owners are actively involved in the community and thus donate time and money to their favorite cause. In almost every case the owner believes the donation is a business deduction. It is NOT a business deduction for tax purposes except under the C-Corporation status; however, the business is still writing the check.
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Bookkeeping – Other Transportation Costs (Lesson 63)
There is much more to transportation with bookkeeping than accounting for vehicle operations, addressing mileage reimbursements or tracking auto costs related to owners and family members.
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Bookkeeping – Auto Costs Related to Owners and Family Members (Lesson 62)
The Internal Revenue Service scrutinizes expenses that can and often are benefits to owners. The most common benefit is the use of a company owned car for personal travel including using the car to get to and from work.
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Bookkeeping – Mileage Reimbursement (Lesson 61)
Some small businesses manage transportation costs in incremental payments by utilizing mileage reimbursement. It is a very advantageous system if used correctly.
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Bookkeeping – Vehicle Operations and Accounting (Lesson 60)
The Internal Revenue Service authorizes two different methods to deduct expenses for vehicle operations. The most commonly used method in small business is the mileage reimbursement method explained in Lesson 61.
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Cash Flow From Operations – Basic Formula
In a pure cash only operation, the profit as reported on the income statement would also be cash flow from operations. But modern-day business is not pure in how it is conducted. Companies agree to pay suppliers at a later time, payroll is weekly or monthly, benefits that are paid in the future are offered to…
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Bookkeeping – Other Taxes (Lesson 59)
There are several other taxes that small businesses must adhere to each year. Other taxes include: Real Estate Taxes, Business Property Tax, State Franchise Tax, State Licenses or Fees, Unique Production or Consumption Taxes, and Assessments.
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Working Capital Management – Production and Sales Flow
There is no single management style to address the multitude of working capital cycles existing in the various business sectors and the underlying industries. Taking raw resources and turning them into consumer goods has different time frames depending on the item produced.
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Bookkeeping – Tracking Income Taxes (Lesson 58)
It is important for the bookkeeper to track income taxes for the business and the owners. Tracking includes apprising management of current status and pending obligations.