During a typical business transaction, a service is performed, or a product is sold, and the business is paid for that service or product at the time provided. However, it is all too common for a business to extend a customer’s time to pay, essentially providing a loan or line of credit to the customer. […]
Question – If I invest in inventory at the start of my LLC and account it as beginning inventory, will I still be able to reduce assets and increase Cost of Goods Sold (COGS) as it sells? I’m just unsure and confused because technically the LLC did not spend any cash to acquire it and
Question – I have managed to really mess up my inventory on hand. The main culprit seems to be my handling and confusion over returns. I keep a spreadsheet with that I thought was pretty accurate but turns out not so much, so I’m going back and trying to fix it. If something sells in
Question – In order to go back and reconcile checking accounts from the beginning of the year, do I just undo January 1 and do it correctly or do I undo the most recent one and go backwards? Our Answer In Quickbooks if you choose to undo January’s reconciliation, it will prompt you that all reconciliations from
Question – I’m been selling on Amazon for about a year as a sole proprietor. I recently created an LLC with a new EIN. What’s the best way to get my Amazon store under the umbrella of my LLC? Just go in and change the legal entity to the LLC’s info? What are the potential
Question – How do you record a donation by way of bill payment? Example: NP Organization receives a bill. Donor pays the bill directly. There is no repayment to the donor obviously. Is this recorded similarly as donated rent/space/equipment as an expense? Is it recorded as the intake of restricted donations even though you’re not
Question – I am applying for health insurance via government website as self-employment. It asked for income. Does it mean gross income or net income? If it is gross income, does it mean sales or sales minus cogs? How about like shipping cost? I received different answers from different agents. Answer – The amount is
Question – I need to see if I understand this: as an s Corp with only me, I should take a reasonable pay on which unemployment, social security, and tax withholding are deducted. The remaining profit in the s corp is taken as a distribution and passed through to personal income tax with no self-employment
Question – I have some things I want to 3D print, paint and sell on Etsy. I’d like to pay my niece to assemble and paint them; give her like $30 per set, for her time. But I don’t want to hire her as an employee. Can I just pay her for her service? She
Question – I just started using Quickbooks Self Employed and linked all my accounts and started categorizing expenses….then hit a brick wall. Is there seriously no inventory/COG category? I googled it and unfortunately, that seems right. Is there a workaround or should I get a different program? Answer – Glad you asked before getting too