The way I see it is that Insurance payment is booked in the asset only because it's paid in advance (annual payment) otherwise it would have been treated like an ordinary expense (if we were to pay it monthly) so if there is no payment at this point why should we book it to prepaid asset account? the insurance policy is still effective but only under one condition which is my company pays the ...To help you organize your piles of papers, we've created a handy checklist of how long to keep tax records. First, a little background on IRS rules , which informed some of our charts: The IRS says you should keep tax returns and the paperwork supporting them for at least three years after you file the return -- the amount of time the IRS has ...
Limited companies are legally required to keep a number of business and accounting records, and there are particularly strict record-keeping, accounting and reporting requirements for both Companies House and HMRC. A number of company records must also be made available for public inspection. A small price to pay for peace of mind. How to handle taxes for salary advances. Because a salary advance is money that would normally be part of an employee's wages, you must withhold and pay payroll taxes on the amount.. Don't withhold and pay taxes on the advance when you distribute it.3rd follow up question: How I do record payments out of my PayPal account to my vendors? Answer: Several ways – You can use the “Vendors >> Pay Bills” option and also the “Banking >> Write Checks” option, depending on if you’ve entered the bill previously or not. Limited companies are legally required to keep a number of business and accounting records, and there are particularly strict record-keeping, accounting and reporting requirements for both Companies House and HMRC. A number of company records must also be made available for public inspection. A small price to pay for peace of mind.
Customer Prepayments and Deposits The most efficient way to record a customer deposit or pre-payment is: 1. Receive payments as usual (Customers > Receive Payments). Because the invoice has not yet been created, the prepayment amount will remain unapplied.Tweet Prepayments are expenses paid in advance and the unexpired up is accounted as current assets in the Balance Sheet. Vice versa, revenues received in advance are payment received from customers for work not yet done or goods to be delivered at some future date. So how do we treat revenues received in advance? Revenues […]
In a computerized accounting sys-tem, the electronic files containing the accounts are still referred to as the ledger, or the ledger accounts. In either system the ledger is often called a general ledger. The general ledger is a permanent record organized by account number. Figure 7 –1 The Accounting Cycle with Steps 4 and 5 Highlighted How to Record Employee Advances in QuickBooks® Greetings! If your company has a policy that allows you to give your employees advances on upcoming payroll, you can use QuickBooks® and QuickBooks® Payroll to record the a dvance, which can then be reimbursed to the compa ny through payroll deductions. If you pay in advance when you purchase goods or services from a vendor, that payment is an asset. Create a ‘Current Asset’ account named ‘Prepaid Expenses’ to track these transactions. When you create the check for the prepaid expense, post it to the Prepaid Expenses account. Pay Advances & Loans. Pay advances and loans allow you to advance additional money to an employee when you process a paycheck.The money advanced to the employee can then be recovered in the next pay period on another paycheck by entering a negative amount in either the Advances or Loans row.