Accounting
Church Tax-Exempt Status and Property Tax on Leased Equipment: Are Nonprofit Exempt Entities Still Liable?
A tax-exempt church received a property tax bill for a leased copier, questioning whether its exempt status covers leased equipment. This article outlines relevant tax principles, highlights the difference between property tax and sales tax exemptions, and recommends verifying state law and lease terms.
Travel Mileage Reimbursement: When the Company Is Thousands of Miles Away, Do Commuting Deduction Rules Still Apply?
An employee working in the Portland/Vancouver area, whose employer is based in New York with no western office, is required to cover the first 30 miles of client visit mileage at their own expense. This article analyzes the applicability of commuting rules in this scenario and provides recommendations.
Exploring Cloud-Native General Ledger Systems Supporting Consolidated Reporting: Open API and Integrated Solutions
A US-based enterprise is evaluating cloud general ledger (GL) systems that require open APIs and the ability to handle consolidation and elimination entries for up to 30 entities. They prefer GL and consolidation functions to be completed within the same system, rather than relying on additional modules or product suites. Sage Intacct suggests pairing with Adaptive, but the user prefers an integrated solution. This article outlines their core requirements and the current industry landscape.
Accounting Treatment Consultation for Insurance Installment Payments and Third-Party Financing
The user consults on an insurance policy with a total value of $85,000, a down payment of $23,000, and the remaining $62,000 financed through a third party, with financing fees of $2,000, paid in 9 monthly installments of $7,111.11. The article outlines the relevant accounting treatment approach and invites feedback from peers.
Handling Overcharged VAT: Accounting and Compliance Guidance for Small Budget Accommodation Businesses
A small budget accommodation business mistakenly overcharged VAT at a rate of 5% when billing walk-in customers (room charge of £25, VAT due £1.25, but actually collected £2.50). This article analyzes, based on tax and accounting principles, how the overcharged £1.25 should be handled, emphasizing that this amount does not constitute business revenue and should be refunded via a credit note or adjusted in the output tax account.
Prepaid Expense Recognition: Accounting Treatment When Invoice Approval and Cash Payment Span Periods
This article analyzes the accounting treatment dilemma for a Q1 2019 expense invoice approved in December 2018 and paid in January 2019: the expense occurs before the service period, but because it has not been actually paid, it cannot be recognized as a prepaid expense. The article discusses possible recognition approaches and principles.
Can the credit balance of a director's current account be converted into share capital?
Regarding a case where a Nigerian company converted the credit balance of a director's current account of 49,000,000 Naira into share capital, increasing it to 50,000,000 Naira, this article evaluates the appropriateness of this treatment from the perspectives of accounting standards and company law, and highlights potential risks.
Trade-off Between Voucher Numbering and Duplicate Payment Prevention: An Internal Control Discussion in the QuickBooks Environment
An organization uses QuickBooks Desktop to record expenses. Vouchers are sequentially numbered with a stamp, but the system only supports a single reference number field, making it impossible to track both voucher numbers and vendor invoice numbers simultaneously. The current practice enters the voucher number in the reference field and the invoice number in the memo field, which fails to effectively block duplicate payments. This article analyzes this dilemma and explores whether retaining voucher numbers is necessary under system constraints, as well as feasible internal control alternatives.
Asset Write-Off (Basics): How to Delete Test Assets and Adjust to One-Time Expense in QuickBooks Online
A new QuickBooks Online user created three assets for depreciation practice but does not actually need them and wants to expense them directly. This article provides steps to delete assets and explains considerations for changes to reconciled transactions and alternative processes.
Accounting Treatment for Repurchase of U.S. Commercial Paper: Key Points for Recording Termination of Cross-Currency Swaps
When an enterprise repurchases U.S. commercial paper from investors and accounts for it at fair value through profit or loss, it must handle termination fees of cross-currency swaps, interest calculation, and potential one-time gains or losses. This article, in conjunction with IFRS 9, analyzes the relevant accounting entries and provides examples.