Bookkeeping News & Tips

Why Use TaxSlayer Books As Your Accounting And Payroll Software

 Maybe you are new to using accounting and payroll software, or you are thinking of changing your current software and TaxSlayer Books is one of the software packages that you are considering. Choosing an accounting and payroll software system is an investment in money and should carry you through the growth of your business.  Below are a few reasons to choose TaxSlayer Books as your next accounting software. 1.       Growing out of an established firm with a solid reputation and over 30 years in the Accounting business, TaxSlayer Books has the full expertise of a professional accounting service behind it. TaxSlayer Books is proud to assist you in your accounting and bookkeeping needs. Our aim is to provide you with the highest quality program and technical support. Our TaxSlayer Books program is a fully functional bookkeeping program that is designed for you, the small business owner. With TaxSlayer Books, you can even e-file your W2s, 1099s, quarterly 941s, and annual 940! 2.       TaxSlayer Books offers three versions of their software package to address all of your business accounting needs. ·         TaxSlayer Books Free Online Edition is complete online bookkeeping software available any time, from anywhere with a computer connected to the Internet. No credit card required to get started. Try it for free and pay if or when you are completely satisfied! ·         TaxSlayer Books Elite (Download Edition) is a comprehensive accounting software specifically designed for the small business. Includes a full general ledger module and complete payroll system. Payroll is simple and easy with the direct deposit available at no additional charge. ·         TaxSlayer Books 1099/W-2 Version allows you to Print and e-file your employee's W-2s and 1099s online in minutes. It is only $2.49 per form and there is no software to download. You can even start for free and e-file later.  3.       TaxSlayer Books also offers great technical support through their help center. The help center includes email support, help videos to guide you step by step through every module of the program, a glossary of common terms and a knowledge base, full of using information and troubleshooting tips. If you have not tried TaxSlayer Books, we invite you to watch our demo video and try TaxSlayer Books Online Version Free Today!

Accumulated Depreciation

Accumulated Depreciation Defined Accumulated depreciation is the total decrease in the value of an asset accumulated up to a specified date, representing the expired value of that asset. The amount accumulated is subtracted from the original cost of the asset, in order, to arrive at the current book value. As the asset ages, the accumulated depreciation will increase. Accumulated depreciation is used so that the recorded cost of an asset, such as equipment, can stay on the books and so that the depreciation of the equipment can be tracked year to year. How Accumulated Depreciation Works A crucial thing to understand when it comes to accumulated depreciation is to realize how the depreciation and accumulated depreciation accounts work together. The depreciation expense has a debit balance, since it is an expense account. Accumulated depreciation is a contra-asset account, so it has a credit balance. When depreciation is recorded (debited), the accumulated depreciation account is credited for the same amount. How To Account For Accumulated Depreciation Yearly Determine Your Yearly Depreciation Expense You can determine your yearly depreciation expense utilizing either a straight line depreciation method or an accelerated depreciation method. The straight line method calculates depreciation by spreading the cost evenly over the life of your asset, while the accelerated depreciation method is used to expense a large part of the cost of the fixed asset at the beginning of the life of the asset. The required variables that you must know in order to calculate the depreciation of a fixed asset are the cost, expected life and salvage life of the asset. Cost- Purchased price of the fixed asset Expected or Useful Life- Useful life is the estimated lifespan that the asset can be expected to contribute to company operations. Although usually expressed in years, the useful or expected life of an asset can be based on number of items produced or hours used. Salvage Life- The estimated resale value of an asset at the end of its useful life. Record the Journal Entries for the Depreciation Expenses At the end of each accounting period, at the end of year for this case, make an entry in the general journal to allocate some of the asset’s cost to the income statement as an expense. This can be done by debiting the depreciation expense account for the amount of yearly depreciation you have determined for your fixed asset, and credit the accumulated depreciation account for the same amount. Close Out The Depreciation Expense Account All expense accounts are temporary and must be closed out at the end of each accounting period. To close out the depreciation expense account, move the balance from the account into the Income Summary Account. It will then be moved into the Retained Earnings Account. Record The Balance Of The Accumulated Depreciation Account On The Balance Sheet As long as the fixed asset is recorded on the balance sheet, its corresponding contra-asset account, accumulated depreciation, should also be recorded.  When the depreciation is debited, the accumulated depreciation should be credited for the same amount. Keep The Assets Accumulated Depreciation On The Balance Sheet Even When The Asset Is Fully Depreciated Once the asset has been fully depreciated, you must still record the fixed asset and accumulate depreciation. The amount recorded for both entries should remain fixed on the balance sheet until the asset is retired or sold.

Reimbursable Business Expenses - What Qualifies

A reimbursable expense is an expense incurred by an employee while performing work for a client. This can occur when a company bills out materials and labor costs on a cost plus basis, or when an employee makes purchases for either goods or services for the employer. Accounting for these expenses is different for each situation and it is important to keep in mind that there are two types of reimbursable expenses, accountable and non-accountable.  Two Types Of Reimbursable Expenses Accountable Reimbursable Expenses An accountable, reimbursable expense is when an employee or company is reimbursed for all expenses that were incurred during the course of a job and are submitted with receipts or other documentation proving the transaction. An example of an accountable reimbursable expense is all the cost an employee may incur on a business trip, whether it be gas, car rental, airfare and/or meals.  Non-Accountable Reimbursable Expenses A non-accountable, reimbursable expense is any expenses incurred during the course of a job that cannot be supported by receipts or documentation. Any non-accountable, reimbursable expense paid to an employee is taxable as wages, and the employer is responsible for taxing them accordingly.  Accounting For Reimbursable Expenses Reimbursing An Employee When reimbursing an employee for situations like a business trip expense, you should report the expense incurred as an expense when it is paid to the employee. Remember to record and reimburse meals separately, because they are treated differently on your tax return compared to the other business trip expenses.  Reimbursing Expenses Incurred During A Job For A Client Many companies incur expenses while working on a job for a client and bill the client for those expenses. In this case, the expense incurred will be credited for the amount of reimbursement received from the client. Some companies do not bill for these costs individually, but include the costs in their overall fee.  Reimbursing On A Cost-Plus Basis Service type companies, like contractors or builders, bill their clients on a cost-plus basis. The reimbursable expense will have an additional cost added, which is considered income for the company. In order to account for the cost-plus basis, you can record the actual expense reimbursement to the expense account and the remaining amount can then be credited to the income account for the company.