On Tue, 13 Feb 2018, Adrien Monteleone wrote:
That was quick, you answered your own question with a recommendation from an accountant in 3 minutes. (at least by my clock)
Adrian, Well, it was actually longer than that when I came up with the solution (and implemented it), and a couple of hours later met with my accountant. The instant solution on the mail list was due to the question being delayed in appearance on the list and my resolution appearing quickly. :-)
I'm curious for a clarification.
Does your accountant mean to expense the non-cash goods and services provided at once? Or to hold these as deferred and expense them as used? Or even to accept them as ‘revenue’ and later deduct them against matching expenses? Just curious. Overall, I think I see where she's going, I just want to understand the advice better.
Good questions. My business has always been run on a cash basis, not accrual. When I take a load to Goodwill, or a bunch of books to the library for resale I now enter the values on the receipts in GnuCash. Where I am non-cash donations (goods and services, such as travel and service time for pro bono assistance to a non-profit group) are deductible from federal and state income taxes. Donating things and time so others can benefit from them can be considered altruistic and represent good will for individuals and businesses. Last year I changed my company's structure from Inc to LLC so the distiction between personal and business is closer with the latter structure. To record these non-cash donations requires an expense account, and that needs to be offset by an asset account. By using these new accounts when I send her the annual P&L and balance sheet, along with PDF copies of each month's bank statements for both business and personal accounts she has all the information needed to prepare my tax returns. She's moving to do as much paperless work as possible and it's easier for me to send PDF attachments to an e-mail than drive two thick wads of paper to her office. Does this clarify things for you? Regards, Rich _______________________________________________ gnucash-user mailing list firstname.lastname@example.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.