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Ok, we have just started a small business and to keep costs low, we are
just using our Personal bank account and have a Sole Prop. business
license (actually a DBA).
I have a couple questions on how the categories work in relation to our
personal accounting...
1) I understand that I put on the Freight line the cost of shipping our
goods to us for resale, but on the sale of that item I assume I put in
the "Gross Sales" category, should that include the shipping cost in
it? Say item is $4.00, Shipping is $1.25, do I put $5.25 in as the
gross sales? What do I do if shipping charge is a slightly different
amount?
ie: Website calculates UPS's charge, charges customer credit card $1.25
shipping, but when I print out the label and drop off the cost is
really only $1.00? Where do I catergorize the .25 difference, because
I have already charged the customer that amount.
2) How do I tell which categories are for business vs. which ones are
for personal use? ie: I have a Telephone category and then a
Utilities:Telephone category, I imagine the first one is for business,
but at the same time, neight of them are associated with Schedule C.
3) Which category for regular office supplies, ie: Staples, Phone
equipments, tape, etc... I'm thinking the Office category?
4) Is it OK to create new categories and associate them with Schedule
C
ther business expense for items like: Shipping Boxes (boxes we
purchase to send out goods in), Internet Service (Domain Name,
bandwidth, etc..), Software, Hardware used for the business, etc....
Thanks!
just using our Personal bank account and have a Sole Prop. business
license (actually a DBA).
I have a couple questions on how the categories work in relation to our
personal accounting...
1) I understand that I put on the Freight line the cost of shipping our
goods to us for resale, but on the sale of that item I assume I put in
the "Gross Sales" category, should that include the shipping cost in
it? Say item is $4.00, Shipping is $1.25, do I put $5.25 in as the
gross sales? What do I do if shipping charge is a slightly different
amount?
ie: Website calculates UPS's charge, charges customer credit card $1.25
shipping, but when I print out the label and drop off the cost is
really only $1.00? Where do I catergorize the .25 difference, because
I have already charged the customer that amount.
2) How do I tell which categories are for business vs. which ones are
for personal use? ie: I have a Telephone category and then a
Utilities:Telephone category, I imagine the first one is for business,
but at the same time, neight of them are associated with Schedule C.
3) Which category for regular office supplies, ie: Staples, Phone
equipments, tape, etc... I'm thinking the Office category?
4) Is it OK to create new categories and associate them with Schedule
C
purchase to send out goods in), Internet Service (Domain Name,
bandwidth, etc..), Software, Hardware used for the business, etc....
Thanks!