USA Business Expenses as decreased revenue

[thomas.sheldrake]

I think this basically two questions:

1) For my personal finances (using gnucash) I don't much like having an Expense acct for work expenses that is not linked up to the corresponding Revenue accts. So what I did was entered in decreases into the Revenue for the business expenses. What could go wrong?

2) How does one link up accounts that are very very connected, such as a liability that is secured on an asset, such as a home, or business expenses that are caused by an income source (such as my example in 1)

thanks!

 

[Fidget]

Can't help you with 2), but in 1), if you're deducting your expenses directly from revenue then you're understating revenue and I think accounting standards, auditors and tax authorities the world over would agree that it is wrong to do that.

 

[thomas.sheldrake]

Wow, thank you. I didn't think about that. The W2 from my job would give the real number to Uncle S., but then I'd be darned confused when I looked at my own figures.

I guess I'll just have an expense category marked "Business Expenses" and keep it that way.