Potters & Sculptors - Making Rock from Mud
Recently decided to become a "Proper" buisness. I already have an accountant and know how to do general bookkeeping. But I have so many questions. I have searched for a website, book, or blog for help but not found any. I am looking for help. If anyone can point me in the right direction it would be greatly appreciated.
Some of my questions are: where (in a spread sheet) do you report an expense for part of mortgage for home studio?
Do you do year end and year beginning inventory? If just starting do I need to do this?
Any help is appreciated.
Another question... is anyone here using Waveaccounting.com?
We tried wave accounting for our accounting group class several years ago. As I recall it was pretty rigid in methods. I have returned to using Quicken Home and Business. It's not free, but it is very adaptable to the mixture of personal and business expenses we encounter with a home based business. Any transaction in any account can be either business or personal or a split between the two. Your mortgage payment would be set up as a split transaction with a percentage going to business use and another percentage going to personal use. (Usually the square footage devoted to purely business use as a percentage of the overall square footage.) That same percentage would then apply to such expenses as utilities, insurance, property taxes, improvements, etc.
Thanks for the reply. I search several places and could not find the info you just gave me.
How long do you think it will take me to set up the program?
Back in 2012 when we did the peer group basic accounting class, Wave accounting did not have the capability to split transactions, which is the main reason I went back to Quicken Home and Business. It is available right now at https://www.amazon.com/Quicken-Business-Personal-Budgeting-Software... for $55.50 including shipping.
Quicken uses accounts - checking, savings, credit cards, loans, etc.
Then it uses categories to classify transactions - - some personal, some business. You apply the correct category to each transaction. Once that is done, all kinds of personal and business reports are easily generated - - balance sheets, cash flow, profit and loss, etc for any chosen segment of time.
If you were to ignore your personal finances, and only enter and categorize your business transactions and those that are split between business and personal categories, you could be all set up within a week or 10-20 hours.
Our accounting class documents are at http://cone6pots.ning.com/group/accounting-101-for-ceramic-artists/...