Category: Bookkeeping – Regular Business Activity
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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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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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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.
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Bookkeeping – Franchise Fee and Revenue Taxes (Lesson 57)
This lesson focuses on the accounting procedure for franchise fees and the formula used for revenue taxes. What is interesting is that in some states, one affects the other.
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Bookkeeping – Meals Tax (Lesson 56)
A major source of local government revenue is the meals tax. Most states authorize the right of local governments to raise revenues utilizing a meals tax.
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Bookkeeping – Suspense Accounts (Lesson 55)
When bookkeepers face an unknown variable with a transaction and don’t know where to place the debit or credit, they use a temporary account to hold the value. This is called the ‘Suspense’ account.
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Bookkeeping – Loan Accounting (Lesson 54)
Almost every small business borrows money. The most common reason is to purchase a fixed asset of some sort. The amount borrowed is most often a long-term liability.
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Bookkeeping – Amortization (Lesson 53)
Amortization is similar to depreciation whereby an asset’s cost is allocated to the expense over time. There are several differences with amortization. Amortization is used with intangible assets and the method is almost always straight line.
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Bookkeeping – Book and Tax Depreciation (Lesson 52)
One of the differences between book income and taxable income is depreciation. In general Section 168 of the Internal Revenue Code allows businesses to accelerate their depreciation for tax purposes.
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Bookkeeping – Depreciation Schedules (Lesson 51)
When a small business purchases fixed assets two financially based opposing forces come into play. The first is the financial reporting desire to present information in a fair manner so management can make good financial decisions. The opposing force has to do with taxation.