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


O

oleander

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!
 
J

John

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 ?

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!
-
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| o'
 
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G

Greg

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
 
M

Myqbaccountant

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/
 
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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
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"
<(e-mail address removed)> 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'
 

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