Claiming Expenses Bookkeeping Question

by H Currie
(NS)

Claiming Expenses

I have a client who is sole proprietor . He uses his personal accounts and cc's for business, there is or no separation between personal and business.

There are often expense-related transactions (gas/meals)on statements that there are no matching receipts for.

His former bookkeeper would net the hst from these transactions and record them as expenses, so I did the same for the first year he was my client (we are just entering year

2). Should I discourage him from wanting to claim items from statements that may not have corresponding receipts?

Most of them relate to meals, which he only claims 50% of.

Any suggestions?

Expenditures

I am working on 2008 records and searching for expenditures that were possibly offset to an income account. Where would I start to search for that? I'm working in quickbooks online.

Expenditures

by Mary
(California)

I am working on 2008 records and searching for expenditures that were possibly offset to an income account. Where would I start to search for that? I'm working in quickbooks online.

Expense and Sub-sequential Refund 8 months apart

by Molly
(Portland, OR)

I am a bookkeeper for a non profit organization. We paid an unemployment benefit expense in December of 2008 and last month received a credit from the unemployment department. Essentially this is a reduction in the expense we had and not income.

If I credit these funds to the expense account there will be a negative number for that account for the profit and loss report this month and the profit and loss report for our taxes. Should I account for this income as miscellaneous income?

Or I could back date the income with an invoice, but then this would change all of the balance sheet reports I have created so far this year.
Thank you for any help you can provide in this situation.

Hello Molly,

Thank you for your question.

It is best to record the transaction when incurred as opposed to backdating with an invoice and changing all of your previous reports.

Since the credit was for a prior expense, you should go ahead and credit the expense account rather than recording it as miscellaneous income.

It should be fine with the expense account showing a negative balance on the monthly reports. However, you may wish to include a note in your files explaining that it is a credit for an expense paid in a previous month.

Expense Purchases with Personal Credit Card

I am working on bringing a small company's books up to date for the last year. Nothing has been recorded properly and they are missing receipts ect. The main issue is that they have purchased supplies/expenses with their personal credit cards and I am unable to balance the company bank statements with these purchases. They make random payments (which don't equal the total of the receipts) from their business bank account to pay back their personal credit card. What do I need to do to ensure we can balance this out? THANK-YOU

Expenses

A colleague has submitted some expenses now going back to 2009 and even ones from this year are from before our year end in 31/07/11. What is the best way to enter them into my SAGE system - shall I date them as of 01/08/11 ie beginning of our financial year?

Expenses - Co Name or Personal Name?

Must items that are classified as expenses in a partnership be registered under the co name i.e phone bills. Must the mobile phone be registered under company's name? Or can it be registered under personal name..

Expensing Equipment

by mwilli
(CA)

I purchased a piece of equipment for $4000. I know I can expense it in full this tax year, so I would debit the expense,and credit cash. But I need it on my balance sheet, too. Do I make an additional entry to debit equipment and credit equity?

Homewoner Association Journal Entry? Credit Memo? Expense?

by J Fletcher
(Arizona)

RC pays dues of of $250 per month to his homewners association. In August 2010 RC performed landscaping for association and invoiced association $1725. RC requested payment be made in form of his dues of $250 being credited each month until balance of invoice is paid. I use Quickbooks. Is the accounting accomplished by credit memo? Journal Entry? The dues need to show as income without an actual cash deposit being made crediting RC'S account each month which is charged $250 each month. Also, the landscaping invoice needs to be expensed out to show on profit and loss. End of the year and reports are due for the homeowner association. How do I make the entries in Quickbooks? I am the homeowner association and RC is the homeowner owing dues and the invoicer. Thank you you for your assistance and for being available. Jeanne Fletcher

How Do I Record Expenses?

by Maureen
(Chesterton, IN)

Just saw this Q and A. I am lost. I am so not a bookkeeper - helping a grandson so that he can go out and do the work.

How do I record expenses that are charged to a visa? Meaning if I record them as Maintenance on the truck and lawn mower but the pay for them with visa, I would be recording them twice - right? I don't know.

I am going nuts. I listed all expenses and income (from plowing)for this year. I come up with a negative $8.89. I triple and more checked the figures I inputted against those show on the bank account. All numbers are the same but the software still gives me a negative. I am not a math person. I can't "see problems" like some can.

Thanks, my brain hurts and my stress level is up.

Hi Maureen,

Typically, expenses charged to a VISA would pass through a VISA credit card liability account. So, you would debit the expense and credit the VISA liability account. Then when you pay the VISA credit card, you would credit the bank account and debit the VISA liability account.

As long as you are entering the transactions through the credit card account you should be fine and not double booking. Also, it is not uncommon to show a loss of income on the books at the end of the year. So if you bank reconciliations are all adding up, your negative $8.89 may very well be accurate.

I hope I helped to alleviate a little of your stress! Take care. :)

List Out Expenditures Incurred In Hotel Industry ?

List out the nature of expenditures spending in Hotel industry ? and point out in which heads should book the following expenditures.

1. Purchase of Flower for Front Office.

2. Expenses of Manure for Garden Maintained by the Hotel

3. Purchase of Use and Glass for Restaurant.

4. Expenditure incurred towards for Street Lighting in the hotel premises.( Purchase of New bulbs for the Same )

Organizational Expenses

2007 paid fee to State for Organization & First Report $25.00 and also in 2007 paid fee for Certificate of Incorporation $40.00.
New company started 4/2009. How do I book this?
Organization (other asset) and Opening Bal Equity(equity)???
Thank you,
Marge

Hello Marge,

Thanks for your inquiry. Typically expenses incurred before the start date of the company would be consider start-up expenses. You are allowed to expense up to $5,000 in start-up expenses. Anything above that would need to be capitalized.

Paid Business Expense Out Of Personal

by Brooke
(Langley)

I am a sole proprietor business and at times, though rarely have paid a business bill out of my personal expenses/acc't. What General Journal entry would I use - note: I am not set up for Shareholders Loan. It would have to be an Equity account I have both Proprietor Contribution or Proprietor Draw.
I know I Debit the Expense ie. Cell Phone
But do I credit the Contribution or Draw?

Providing Expense Receipts to Customer

We frequently travel to customer sites. We bill for time and expenses. We are currently providing expense receipts to our customers for things like Airfare, Hotel and Rental Car (items over $75.00). Is it necessary that we do this?

Software Expenses

Hi there,

We have started a new business and purchased an accounting software. Just wondering where do I need to enter that software expenses.

Thanks and regards,

Bhoomi

T&E and Other Expenses Only Partially Deductible

by Joseph
(New Jersey)

My business partner and I recently formed an LLC, which we understand will not have to pay taxes, while we will have to pay taxes on our draw.

I understand that T&E are only 50% deductible but don't understand how to account for them and properly reflect the tax treatment. If we are going to reimburse ourselves 100% from LLC funds for out-of-pocket T&E, then how do we handle the accounting on the books of the LLC?

If we get 100% reimbursement and then only draw from and pay taxes on cash in the company, then how is the 50% taxable part of T&E ever taxed?

Where Do I Put This Expense?

by Sharon
(Georgia)

The small business I work for gave a gift of a cruise to an employee for a 20 year anniversary. How do I handle this expense in my bookeepping?

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