Bookkeeping Question....

[moretime_cassi]

I haven't dealt with many accounting/bookkeeping matters since I received my AS degree in Accounting seven years ago! I'm trying to brush up, but in the meantime it would mean the world to me if you bookkeeping savvy ladies could answer a few of my questions here and there...

Right now I'm trying to figure out how I should handle this one (FWIW I'm using QuickBooks Pro for my books): when we opened our business bank account they gave us $50 for opening a new account. Where should I show this $ coming from? Misc. income?

I'm really hoping this is just going to keep coming back to me just like riding a bike - a girl can hope, right?

TIA! (Thanks in advance)

[Gems Virtual Office]

yes you could use Misc. income and just use a memo showing it coming from the bank....thats what I'd do with it....I'm sure there are other ways

[Rebecka Melson]

Yep, Misc. Income is where I'd put it.

[moretime_cassi]

Thanks! You sure helped boost my self-confidence! I'm so glad I remember some of this stuff...

[moretime_cassi]

Already another question... (can you tell it is catch up books night?)

What expense account did you use for all the fees associated with registering business name and tax numbers, etc?

TIA!

[Rebecka Melson]

Fees related to setting up the business would be considered start-up costs and should be coded to an asset account called "startup costs", which will be amortized over a period of years (off the top of my head I don't remember how many).

Annual renewal fees can be expensed, I code them to an expense account called "licenses and permits".

[Rebecka Melson]

Thanks! You sure helped boost my self-confidence! I'm so glad I remember some of this stuff...

Don't worry, it will all come back to you.

[moretime_cassi]

Fees related to setting up the business would be considered start-up costs and should be coded to an asset account called "startup costs", which will be amortized over a period of years (off the top of my head I don't remember how many).

Annual renewal fees can be expensed, I code them to an expense account called "licenses and permits".

It seems that partnership organization fees cannot be amortized? Anywho, I put that into the "Ask my accountant" account for now.

Before my business bank account debit card was in place I purchased things for the business with my own card with the intent to reimburse later. What account should I credit for the purchase of these things (that I will debit when I write the reimbursement check)? Member equity doesn't seem quite right to me for that... Thanks!

[moretime_cassi]

I did some hunting around the QuickBooks Community and ending up creating a Current Liability Account "Reimbursements Owed". I'll get this together eventually. Thank goodness for the internet!!

[Rebecka Melson]

Cassi,

Here is a link to an IRS article about startup costs. I don't know who told you they couldn't be amortized, but they are wrong. Organization fees are a start up cost. There is also another thread on here somewhere about startup costs where you can get some more info.