OT: General Accounting Help Needed (Who's Right?)

Discussion in 'Quickbooks' started by oleander, Nov 18, 2004.

  1. oleander

    oleander Guest

    Re: Manufacturing/Construction Industry Expense Allocation (Canada, BC
    Taxes).

    In our small business I have always applied Meals, Gas and Travel receipts
    to those matching G/L expense accounts regardless if they were acquired
    while on
    one particular job, or were acquired as general daily expenses covering many
    different jobs. If those kind of expenses were acquired for one particular
    job I would then apply them through JOB COSTING, not just through the G/L
    expense
    accounts.

    Now, the company's, recently hired, data entry op is insisting that Meals,
    Gas and Travel
    expenses acquired while fulfilling a singular client's order should be
    applied to the general Cost of Goods Sold expense account (and she's
    convinced the
    boss she's right and I'm wrong).

    If she is right, and I am wrong, can someone please explain why? And what,
    if any, tax breaks/claims are advantageous in applying those expenses to
    Cost of Goods Sold instead of their corresponding named accounts?

    Thank you,
    PS. If she's right I'll probably get fired because I've been doing it my way
    for years, and... she's the boss's wife. Shiiish!
     
    oleander, Nov 18, 2004
    #1
    1. Advertisements

  2. oleander

    John Guest

    In the US she is wrong. You can link them to a job if you want them to
    show up in a P&L but they are not COG's

    Read your definition for COG's

    Did you ask this in alt.accounting ?

    On Thu, 18 Nov 2004 03:14:32 GMT, "oleander"
    <> wrote:

    >Re: Manufacturing/Construction Industry Expense Allocation (Canada, BC
    >Taxes).
    >
    >In our small business I have always applied Meals, Gas and Travel receipts
    >to those matching G/L expense accounts regardless if they were acquired
    >while on
    >one particular job, or were acquired as general daily expenses covering many
    >different jobs. If those kind of expenses were acquired for one particular
    >job I would then apply them through JOB COSTING, not just through the G/L
    >expense
    >accounts.
    >
    >Now, the company's, recently hired, data entry op is insisting that Meals,
    >Gas and Travel
    >expenses acquired while fulfilling a singular client's order should be
    >applied to the general Cost of Goods Sold expense account (and she's
    >convinced the
    >boss she's right and I'm wrong).
    >
    >If she is right, and I am wrong, can someone please explain why? And what,
    >if any, tax breaks/claims are advantageous in applying those expenses to
    >Cost of Goods Sold instead of their corresponding named accounts?
    >
    >Thank you,
    >PS. If she's right I'll probably get fired because I've been doing it my way
    >for years, and... she's the boss's wife. Shiiish!


    -
    ____ _
    | __\_\_o____/_|
    <[___\_\_-----<------------------<no spam please><
    | o'
     
    John, Nov 18, 2004
    #2
    1. Advertisements

  3. oleander

    Greg Guest

    On Thu, 18 Nov 2004 03:14:32 GMT, "oleander"
    <> wrote:

    >Re: Manufacturing/Construction Industry Expense Allocation (Canada, BC
    >Taxes).
    >
    >In our small business I have always applied Meals, Gas and Travel receipts
    >to those matching G/L expense accounts regardless if they were acquired
    >while on
    >one particular job, or were acquired as general daily expenses covering many
    >different jobs. If those kind of expenses were acquired for one particular
    >job I would then apply them through JOB COSTING, not just through the G/L
    >expense
    >accounts.
    >
    >Now, the company's, recently hired, data entry op is insisting that Meals,
    >Gas and Travel
    >expenses acquired while fulfilling a singular client's order should be
    >applied to the general Cost of Goods Sold expense account (and she's
    >convinced the
    >boss she's right and I'm wrong).
    >
    >If she is right, and I am wrong, can someone please explain why? And what,
    >if any, tax breaks/claims are advantageous in applying those expenses to
    >Cost of Goods Sold instead of their corresponding named accounts?
    >
    >Thank you,
    >PS. If she's right I'll probably get fired because I've been doing it my way
    >for years, and... she's the boss's wife. Shiiish!

    Nope your right shes wrong, but you still might get fired, its hard to
    sack the wife
     
    Greg, Nov 18, 2004
    #3
  4. "oleander" <> wrote in message news:<ssUmd.183851$9b.163444@edtnps84>...
    Re: Manufacturing/Construction Industry Expense Allocation (Canada, BC
    Taxes).

    In our small business I have always applied Meals, Gas and Travel
    receipts
    to those matching G/L expense accounts regardless if they were
    acquired
    while on one particular job, or were acquired as general daily
    expenses covering many different jobs. If those kind of expenses were
    acquired for one particular job I would then apply them through JOB
    COSTING, not just through the G/L expense accounts.

    Now, the company's, recently hired, data entry op is insisting that
    Meals,
    Gas and Travel expenses acquired while fulfilling a singular client's
    order should be applied to the general Cost of Goods Sold expense
    account (and she's convinced the boss she's right and I'm wrong).
    If she is right, and I am wrong, can someone please explain why? And
    what, if any, tax breaks/claims are advantageous in applying those
    expenses to Cost of Goods Sold instead of their corresponding named
    accounts?

    Thank you,

    PS. If she's right I'll probably get fired because I've been doing it
    my way for years, and... she's the boss's wife. Shiiish!


    From the accounting point of view you are absolutely right. Your new
    Operator may thinking it other ways by applying Meals, Travel and Gas
    expenses to Cost of Goods Sold. Actually as per Tax Rules Meals,
    Travels like expenses is allowed to have only 50% deduction. While the
    putting them into Cost of Goods Sold may allow her to deduct them
    fully, because this will give benefit to the taxpayer for paying
    taxes. But first it should be confirmed that whether those expenses
    are directly related to a particular Job.



    myQBaccountant Team
    Free unlimited Quickbooks Support
    http://www.myqbaccountant.com/
     
    Myqbaccountant, Nov 19, 2004
    #4
  5. oleander

    bradgilliatt

    Joined:
    Aug 29, 2015
    Messages:
    25
    Likes Received:
    1
    Location:
    michigan
    In certain situations it is allowable as an expense. For instance, if you are hosting a lunch meeting with the company to discuss project progress. Additionally, if it qualifies as reimburseable based on time/distance and you and you can bill that back to the customer it is certainly a direct project cost. The difference between binnint to the m&e accoumt and to cogs is the tax treatment; at this level all m&e accounts are likely mapped to the 50% fed deduction category whereas cogs is 100% deductible. To directly answer ur question, you are both wrong, as it can go eith way depending on circumstance. Now, if all else holds and its truly just one job as opposed to multile determining deductibility then you are right and that person shouldnt be paid more that 6 dollars an hr
     
    bradgilliatt, Aug 29, 2015
    #5
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. JIM
    Replies:
    15
    Views:
    1,083
    Mike Blake-Knox
    Feb 5, 2005
  2. ionltd

    USA S corp distributions

    ionltd, Jun 14, 2016, in forum: Businesses / Corporations
    Replies:
    9
    Views:
    1,490
    ionltd
    Jul 8, 2016
  3. leemannering

    UK C I S how materials appear on end of year

    leemannering, Jul 12, 2016, in forum: Technical Queries
    Replies:
    0
    Views:
    173
    leemannering
    Jul 12, 2016
  4. PolarUKR

    Canada Owner's equity and Expenses

    PolarUKR, Aug 3, 2016, in forum: Businesses / Corporations
    Replies:
    0
    Views:
    434
    PolarUKR
    Aug 3, 2016
  5. StaffAccountantTX

    USA Fixed Assets-Capitalizing An Asset that's 50% Paid For

    StaffAccountantTX, Aug 11, 2016, in forum: General Accountancy Discussion
    Replies:
    2
    Views:
    163
    CPA608
    Aug 12, 2016
  6. dcRealtor

    USA Trying to Estimate where S-Corp makes sense for me

    dcRealtor, Sep 15, 2016, in forum: General Tax Discussion
    Replies:
    1
    Views:
    311
    Stephen Gsell
    Sep 17, 2016
  7. Sunlover

    Australia Unable to reinstall Q/B's SB edition - 2011/12 after PC upgrade

    Sunlover, Sep 27, 2016, in forum: Accounting Software
    Replies:
    0
    Views:
    167
    Sunlover
    Sep 27, 2016
  8. MLB

    S Corporations Payroll

    MLB, Sep 28, 2016, in forum: Businesses / Corporations
    Replies:
    1
    Views:
    321
    Stephen Gsell
    Sep 29, 2016
Loading...