Accounting & Banking

What is an Accounting Method? An accounting method is a set of rules used to determine when and how to report income and expenses in your books and on your income tax returns. You choose an accounting method when you file your first tax return. If you want to change your accounting method, you must […]

This is a general reference indicating who, what, when, and where to send your tax forms. Type Of Business Entity Forms Required Purpose When To File Where To File INCOME TAXES – Federal Only Sole Proprietor Form 1040 Schedule C Report taxable income: Schedule included in individual income tax return 15th day of the fourth

Overview For those that aren’t familiar with the world of tax years, here’s a quick lesson.  Adopting a calendar year means you must maintain your books and records , and report income and expenses from Jan. 1 through Dec. 31 each year. A taxpayer who files a first tax return based on the calendar year

Almost all businesses use petty cash. I have discovered that many clients do not correctly record petty cash transactions in Total Office Manager. First, your petty cash account should be set up in Total Office Manager under the “Chart of Accounts” by selecting “Bank” as the type of account. There are a couple of ways

Introduction Many owners and managers are familiar with the General Journal . However, there still may be some of you that haven’t yet fully grasped the concept, so the following definition is for review. A journal is a page that is divided down the middle by a line. Depending on the type of transaction ,

What is Depreciation? When you buy a capital asset, such as a service station, you expect to use that item for several years. A capital asset is a piece of equipment, a building, or a vehicle for use in your business. The cost of these capital assets should be written off over the same period

Introduction This topic was written to help you understand how to enter outstanding bills and other A/P transactions into Total Office Manager. This work will help assure that Total Office Manager’s balance sheet is up-to-date and current as of your company’s start date. Usage After you’ve entered the historical bills and bill payments from your

Introduction This section applies only to those of you have been using another accounting system AND want to enter your old historical data and information into Total Office Manager.  Not everyone does this. Many companies simply “start fresh” with their new accounting software. This important topic covers entering beginning or ending balances and historical transactions

Introduction With Cash Basis Accounting, income is recorded when cash (checks, money orders, or currency) is received, and expenses are recorded when paid. However, unpaid credit sales and purchases do not show on ledgers, which can present a misleading picture of income and expenses. Accrual Basis Accounting is where revenue and expenses are recorded in