About ten years ago I had a client who used the following date format in the name of his electronic files such as PDFs: 2007-07-31. I quickly realized that this made the files much easier to organize. A couple months ago a friend explained where the date format came from. He said that it comes from the ISO.
Here is a table I made describing how to determine if somebody qualifies as a child or relative for exemption purposes on the 1040. I made this last fall for the tax course I took as part of my master’s degree. The TA liked it so much that he included it as part of the next lecture as review. That made me feel really good.
Bookkeeping is like working on a loom, weaving with yarn. Each strand of yarn is like the running balance in each account in the chart of accounts.
I made the following imputed interest income flow chart last fall, while taking the tax course that is required for my master’s degree. It wasn’t in the textbook.
Here is a table I made to help me remember the treatment for gains and losses under certain sections. The sections are 1231, 1245, 1250, and casualty is there too. These are all greater than one year, so there is nothing short term here.
In this post, I contrast the QuickBooks Home window with a table I made that shows how money flows into and out of a business.
It is possible to enter any date you want for any transaction in QuickBooks. Back-dating is an option, but care must be exercised.
If you are a sole-proprietor, you may have wondered about the Owner’s Draw account and how it works. I’ll try to explain it in a way that makes sense to people who use QuickBooks.
Owner's Draw is an equity account on the Balance Sheet. It represents the sum of personal money that the owner has added and removed from the business. I recommend that sole proprietors do the following. 1. Change the name of Retained Earnings to Owner's Draw. If there is already an Owner's Draw, Owner's Investment, or … Continue reading Everything you want to know about Owner’s Draw in QuickBooks
Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold