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Business expenses

I bought a box of neoprene gloves that I will use throughout many jobs over the next month or two. I also bought an inexpensive tool belt that will depreciate over time. Can someone please tell me which expense account I should put these items under when entering and paying the bill? 

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Best answer 02-23-2019

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Established Community Backer ***

Re: Business expenses


@marvelglassllc wrote:

I bought a box of neoprene gloves that I will use throughout many jobs over the next month or two. I also bought an inexpensive tool belt that will depreciate over time. Can someone please tell me which expense account I should put these items under when entering and paying the bill? 


 

use shop supplies exoense for the gloves, and tools expense for the belt.

It is an expense and will not be subject to depreciation, depreciation is for high cost things that have a long life, like a floor drill press, lathe, etc

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Established Community Backer ***

Re: Business expenses


@marvelglassllc wrote:

I bought a box of neoprene gloves that I will use throughout many jobs over the next month or two. I also bought an inexpensive tool belt that will depreciate over time. Can someone please tell me which expense account I should put these items under when entering and paying the bill? 


 

use shop supplies exoense for the gloves, and tools expense for the belt.

It is an expense and will not be subject to depreciation, depreciation is for high cost things that have a long life, like a floor drill press, lathe, etc

Established Community Backer ***

Re: Business expenses

If you Already Paid, you don't need to Enter a Bill to be paid later. You already Bought and paid for this stuff.

 

You use Banking menu > Enter Credit Card Charge, if you put it on a credit card, already.

 

You use Banking menu > Write Check, if you paid by check or debit card.

Senior Explorer *

Re: Business expenses

thank you for your response. So I may be doing something wrong then when I purchase random items or tools etc. If I pick something up at the hardware store I have been entering it as a bill with the hardware store as the vendor and then paying that bill. Are you saying there is a quicker or more appropriate way to be doing this? I do the same with gas etc. 

Senior Explorer *

Re: Business expenses

@Rustler Thank you. Can you explain to me how to go back and edit a bill I already paid so I can change the account I put the expense under?

Established Community Backer ***

Re: Business expenses


@marvelglassllc wrote:

@Rustler Thank you. Can you explain to me how to go back and edit a bill I already paid so I can change the account I put the expense under?


in Desktop click enter bills, then top left click the back arrow until you get it on screen

Established Community Backer ***

Re: Business expenses

"Are you saying there is a quicker or more appropriate way to be doing this? I do the same with gas etc."

 

You already paid. There is no Reason to first Enter Bill, because you Paid it, already. You enter what you bought for how you paid. Enter Bill is the process of showing, I was allowed to get the goods or service and I need to Pay it Later.

 

Example: I used the credit card at Staples = Not a Bill. Staples doesn't send me a Bill and allow me to pay later. I already paid, so I enter that I made a Credit Card Charge and bought something as expense.

 

Check Expense = debit card spending.

 

And for Fuel and other vehicle operating costs, you have to understand how the vehicle rules apply. Most times, that is Personal. You need to know if this is a business car, owned by your corporation (in which case, personal use is taxable to you through payroll) or personal vehicle and you turn in mileage reports to be reimbursed from your employer, or this is all personal and you track a mileage log and your tax return shows the business tax return is taking Mileage Allowance, not Actual Expense of operations as partial expense for partial use. Or, that is a Specialty vehicle, such as Drill Rig or Tow Truck.

Senior Explorer *

Re: Business expenses

Thank you. As for the Truck/Gas expense, it is a commercial truck bought under my own business so all expenses and mileage are business related. I use my debit card for all purchases of gas, tools etc. So you are saying rather than entering the bill and paying the bill for practical purposes of there not being an actual bill that exists, I can just "write check" and under the check number put "debit" correct? Both ways get the same result as far as accounting for my business expenses, but using the "write check" function saves me the step of entering the bill and then subsequently paying that bill. Got it. Thanks.

Established Community Backer ***

Re: Business expenses

This is Not how the tax regulations apply: "so all expenses and mileage are business related."

 

If no actual Bill exists, which means "Something I will not pay until a later date" then there is no reason to do that many Bookkeeping steps. You likely have a business to run, not doing twice as much work to do the bookkeeping.

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