FAQ

When I buy inventory using Paypal credit, when/how does this get recorded?

Question – When I buy inventory using Paypal credit, when/how does this get recorded? Does it belong in the month I make the purchase and receive the inventory, or six months later when I pay the bill? Our response – The record takes place when you make the purchase or receive the inventory.  

How long do I need to keep eBay sales records for tax purposes?

Question – How long do I need to keep eBay sales records for tax purposes? I’m a long-time seller on eBay and I’m getting ready to move. I have boxes of sales records from the last 5 years. Will I need these if I’m audited? I do have a legal business and collect sales tax

What is the best way to remove the past expenses from the P&L?

Question – A corporation with a single owner pays for personal expenses out of his business account. In the past, they have been recorded under expenses using a category “personal expense” just to track it. I am in the process of transitioning them to payroll for these expenses, but what is the best way to

Can I have a Texas LLC or s Corp owned by me in California?

Question – I’m getting conflicting info from TX and CA tax attorneys. Can I have a Texas LLC or s Corp owned by me in California where the physical work is being done in Texas and I am managing the website in California, only have to pay Texas taxes on it? How do I accomplish

How do I write a personal check to myself in an S Corp?

Question – My Amazon business is structured as an S-Corp. I pay estimated taxes quarterly and when I do I write a personal check to myself and then pay the IRS/State with a personal check. I’m curious if anyone pays their estimated taxes through their business? I find it to be a hassle to write

How do I code items that arrive broken or faulty in my accounting software?

Question – I have a question about breakages when you have sent the item to the customer or faulty goods.  Whenever I sell something that is not as described (mistakes happen) or has broken due to my packaging, I give a full refund and let the customer keep the item.  From the accounting perspective, I realize

What is the best accounting software for a home based cake baking business?

Question – The best accounting software depends on your particular business. If it is very small and you do not need to track your inventory, you could probably use spreadsheets like the ones I give away on this site. Our response – However, if you need to track your inventory or if you needed to