Accounting For Dummies

Changes to Alberta’s Personal Income Tax Structure

Alberta is making changes to the personal income tax structure.

Click below and see table.

Alberta personal income tax

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Posted by nooshin - September 23, 2015 at 1:41 pm

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How to Calculate Currency Exchange

BUYING AND SELLING PRODUCT IN ANOTHER COUNTRY.

If your company is a registered Canadian company than all the financial statements (assets, liabilities, equity, income and expenses) need to reflect in Canadian funds.

I will give an example of a US dollar purchase and payment. it will give you an idea of how the transaction will flow through the general ledger.

Purchase example: I will purchase $3000. worth of fabric from a US fabric store and the exchange rate on the day of purchase is 1.129%.

First – you need to find out how much $3000. US is in Canadian funds. ($3000. x 1.129= $3387.)

The entry will be:

Debit                    Credit

Raw Material Purchase          $3387.

Accounts Payable                                              $3000.

Exchange Gain or Loss                                        $387.

 

Payment example: Since I already have a US bank account I will simply write a US chq for $3000. the exchange rate on the day I wrote the chq is 1.174% ($3000. x 1.174=$3522.)  The entry will be:

Debit                    Credit

Accounts Payable                  $3000.

US Bank Account                                              $3522.

Exchange Gain or Loss              $522.

 

 

 

 

 

 

 

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Posted by nooshin - June 3, 2015 at 12:52 pm

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Less Tax Starts with Keeping Good Records

Let’s face it; bookkeeping is the last thing that any small business owner wants or has time to do. But maintaining well-organized books and records is a crucial part of running a successful business, not to mention that it’s required by the IRS. Keeping up with the books year-round instead of scrambling to round up your records at tax time will not only help you monitor the progress of your business, but it will also make for a less taxing tax season.

Followings are just some suggestions. If you haven’t decided how to manage your receipts, this article should give you some ideas.

FOUR ONLINE TOOLS FOR FAST AND EASY BOOKKEEPING

Organize and securely store your records and automate bookkeeping with these user friendly and affordable online tools:

  • Shoeboxed: Mail your receipts and important records to Shoeboxed for scanning, data entry, and secure online organization and storage. From your online account, download Excel and CSV spreadsheets, PDF reports, and QuickBooks and Quicken files, and seamlessly export data to other web applications. Shoeboxed is an IRS-accepted electronic storage system, which means that you don’t have to keep the hard copies after processing, and even offers a free shred-and-recycle option.  
  • Outright.com: Sync your Outright.com account with Shoeboxed, FreshBooks, PayPal, your bank account, and other sources to automate your bookkeeping. At tax time, Outright calculates quarterly estimated taxes, automatically populates your Schedule C, and even requests Form W-9 from contractors and freelancers and files Form 1099-MISC on their behalf.
  • FreshBooks: Use FreshBooks for fast, simple and professional-quality invoicing. Snag receipts directly from Shoeboxed to bill clients for expenses, keep track of overdue invoices, and automatically export paid invoices to Outright.com where income is tracked. Harvest is another excellent invoicing tool for small business owners.
  • Bill.com: Simplify your bill workflow with easy and affordable online bill management and payment tools from Bill.com.

Secure your receipts at Shoeboxed.com

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Posted by Administrator - January 27, 2011 at 10:14 am

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T Accounts for Dummies

T-Accounts & Credit Debit

The final product of an accounting system are financial reports. The standard system to help us understand the business transactions are defined through a T Account.  Accounting system consists of various elements like debits/credits, double-entry accounting, and chart of accounts.

The full explanation of these terms are included in a PDF file called T Accounts for Dummies. It also covers other basic accounting topics and resources.

Page 104 of Fundamental Accounting Principles Text Book (Volume 1 by Larson Jensen) defines T-Accounts as: A simple characterization of an account form used as a helpful tool in showing the effects of transactions on specific accounts.

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Posted by Administrator - November 26, 2010 at 7:42 pm

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