If you're a businessperson or professional, ask yourself the following questions:
● Are you claiming all of the business deductions you're entitled to?
● Would your financial reports withstand the test of an audit?
● Are you in compliance with all payroll and sales tax reporting, deposits
and filings?
● Are your business books ready for tax preparation?
● Do you know how to interpret your financial reports to manage your
business, determine your profitability and project for future success?
If you answered no to any of these questions, let's talk.
Certified Quickbooks® ProAdvisor with 28 years of accounting experience and will help you solve any bookkeeping problems you may have.
Call Kathryn today at (856) 803-4651 to schedule your free consultation.
Kathryn C. Tiffany, LLC
Voorhees, New Jersey
Phone: 856-803-4651
Email:Kathryn@TiffanyAccounting.com
Web: http://www.TiffanyAccounting.com
Intuit QuickBooks Profile: http://proadvisor.intuit.com/quickbooks-help/kathryn-tiffany
Member of:
American Institute for Professional Bookkeepers
National Bookkeepers Association
Intuit QuickBooks program - Certified QuickBooks ProAdvisor
Voorhees Business Association
Chamber of Commerce
Journal of Accountancy and Accounting Today
Sunday, November 30, 2014
Straight-line Method of Depreciation
Straight line depreciation method: Depreciation is charged uniformly over the life of an asset.
We first subtract residual value of the asset from its cost to obtain the depreciable amount.
The depreciable amount is then divided by the useful life of the asset in number of accounting periods to obtain depreciation expense per accounting period.
Due to the simplicity of the straight line method of depreciation, it is the most commonly used depreciation method.
The formula to calculate the straight-line depreciation of an asset for a full accounting period is:
Here's an example:
On Jan 1, 2014 Company A purchased a vehicle costing $20,000. It is expected to have a value of $5,000 at the end of 4 years. Calculate depreciation expense on the vehicle for the year ended Dec 31, 2014.
We will first find the depreciable amount which is $15,000 ($20,000 cost minus $5,000 residual value). Then we divide the depreciable amount by the 4 which is the useful life of the vehicle. This will give a figure of $3,750 for the yearly depreciation.
Or by using the formula:
Depreciation = ($20,000 − $5,000) / 4 = $3,750
Here's another example:
Occasionally, we may need to charge depreciation for a period less than full financial year.
For example, if the vehicle was purchased on July 1, the depreciation should be charged only for a portion of the financial year.
In such situation we multiply the full year straight line depreciation formula by the fraction the asset has been used in the current accounting period.
This is illustrated below.
Depreciation Expense = (6months/12months) × [ ($20,000 − $5,000) / 4 ] = $1,875
We first subtract residual value of the asset from its cost to obtain the depreciable amount.
The depreciable amount is then divided by the useful life of the asset in number of accounting periods to obtain depreciation expense per accounting period.
Due to the simplicity of the straight line method of depreciation, it is the most commonly used depreciation method.
The formula to calculate the straight-line depreciation of an asset for a full accounting period is:
| Depreciation = | Cost − Salvage Value |
| Life in Number of Periods |
Here's an example:
On Jan 1, 2014 Company A purchased a vehicle costing $20,000. It is expected to have a value of $5,000 at the end of 4 years. Calculate depreciation expense on the vehicle for the year ended Dec 31, 2014.
We will first find the depreciable amount which is $15,000 ($20,000 cost minus $5,000 residual value). Then we divide the depreciable amount by the 4 which is the useful life of the vehicle. This will give a figure of $3,750 for the yearly depreciation.
Or by using the formula:
Depreciation = ($20,000 − $5,000) / 4 = $3,750
Here's another example:
Occasionally, we may need to charge depreciation for a period less than full financial year.
For example, if the vehicle was purchased on July 1, the depreciation should be charged only for a portion of the financial year.
In such situation we multiply the full year straight line depreciation formula by the fraction the asset has been used in the current accounting period.
This is illustrated below.
Depreciation Expense = (6months/12months) × [ ($20,000 − $5,000) / 4 ] = $1,875
Saturday, November 8, 2014
New Jersey Bookkeeper
Kathryn C. Tiffany, LLC - Bonded, Insured and Licensed professional bookkeeping solutions' inception was born out of the need for quality, low-cost accounting for our clients.
How is your valuable time spent?
Are you spending more time on your company's record-keeping than on your company's growth?
Outsourcing your bookkeeping is an inexpensive and effective way to free your time for focusing on the business matters that need your attention.
What we can do for you
Bill Pay/Accounts Payable
Enter bills and purchase orders
Enter credit card transactions
Record payments
Print checks for client to sign
Invoicing/Accounts Receivable
Enter invoices and sales orders
Post receipts
Print invoices and statements
Reconciliations
Bank
Debt
Credit Card
Adjusting journal entries
Depreciation
Accruals
Prepaids
Transfers
Payroll
Enter payroll information
Make tax deposit
Secure online access for processing data with your payroll services
QuickBooks (all versions)
Intuit QuickBooks installation, implementation and training.
Our core focus is to ensure that our clients, regardless of size and business sector, are given the opportunity to experience first class bookkeeping and computer services from knowledgeable, qualified, certified QuickBooks ProAdvisor professionals.
Quick, Accurate, Affordable Rates
CALL US TODAY FOR YOUR FREE CONSULTATION! 856-803-4651
Kathryn C. Tiffany, LLC
Certified Professional Bookkeeper and Certified QuickBooks ProAdvisor
Voorhees, NJ
856-803-4651
Intuit QuickBooks Profile: http://proadvisor.intuit.com/quickbooks-help/kathryn-tiffany
Website: http://www.TiffanyAccounting.com
Email: Kathryn@TiffanyAccounting.com
How is your valuable time spent?
Are you spending more time on your company's record-keeping than on your company's growth?
Outsourcing your bookkeeping is an inexpensive and effective way to free your time for focusing on the business matters that need your attention.
What we can do for you
Bill Pay/Accounts Payable
Enter bills and purchase orders
Enter credit card transactions
Record payments
Print checks for client to sign
Invoicing/Accounts Receivable
Enter invoices and sales orders
Post receipts
Print invoices and statements
Reconciliations
Bank
Debt
Credit Card
Adjusting journal entries
Depreciation
Accruals
Prepaids
Transfers
Payroll
Enter payroll information
Make tax deposit
Secure online access for processing data with your payroll services
QuickBooks (all versions)
Intuit QuickBooks installation, implementation and training.
Our core focus is to ensure that our clients, regardless of size and business sector, are given the opportunity to experience first class bookkeeping and computer services from knowledgeable, qualified, certified QuickBooks ProAdvisor professionals.
Quick, Accurate, Affordable Rates
CALL US TODAY FOR YOUR FREE CONSULTATION! 856-803-4651
Kathryn C. Tiffany, LLC
Certified Professional Bookkeeper and Certified QuickBooks ProAdvisor
Voorhees, NJ
856-803-4651
Intuit QuickBooks Profile: http://proadvisor.intuit.com/quickbooks-help/kathryn-tiffany
Website: http://www.TiffanyAccounting.com
Email: Kathryn@TiffanyAccounting.com
Dual control system: Why it's important to establish an internal control system to prevent embezzlement
Woman allegedly stole $30K from company
A former bookkeeper for an Oak Harbor property management company is accused of embezzling about $30,000 from the business, according to documents on file in Island County Superior Court.
Prosecutors charged Theresa M. Gonsalves, 54, of Oak Harbor, with first-degree theft Nov. 3 in Island County Superior Court.
The co-owner of the company contacted police earlier this year and reported his suspicion that Gonsalves embezzled money from the company, according to the officer’s report.
The man reported that he discovered a $1,500 discrepancy in the company’s accounting in March and approached Gonsalves about it; she allegedly admitted to taking the money because “she had fallen on hard times,” the report said.
The man said he told the bookkeeper that she should have come to him if she needed money.
“He had helped other employees who were in similar circumstances and they had come to an agreement on paying him back,” the officer said in his report.
Gonsalves became very emotional and started crying when the owner told her that she was fired.
The man became suspicious and realized that the situation might be worse than the missing $1,500, the report said.
The owner said he reviewed the business’ financial records and discovered alleged shortages totaling more than $30,000 from the period of March 2011 to March 2014, according to the officer’s report.
Story and Comments: http://www.whidbeynewstimes.com
Dual control system requires the authorization or approval of two individuals to complete a transaction. It’s that simple. One individual should not be responsible for an entire financial transaction from beginning to finish. Many small companies fall into the trap of having one bookkeeper handle all accounts payable and accounts receivable and write, sign, and deliver the checks. The dual control system puts a second set of eyes on transactions, greatly lessening the risk of embezzlement.
A former bookkeeper for an Oak Harbor property management company is accused of embezzling about $30,000 from the business, according to documents on file in Island County Superior Court.
Prosecutors charged Theresa M. Gonsalves, 54, of Oak Harbor, with first-degree theft Nov. 3 in Island County Superior Court.
The co-owner of the company contacted police earlier this year and reported his suspicion that Gonsalves embezzled money from the company, according to the officer’s report.
The man reported that he discovered a $1,500 discrepancy in the company’s accounting in March and approached Gonsalves about it; she allegedly admitted to taking the money because “she had fallen on hard times,” the report said.
The man said he told the bookkeeper that she should have come to him if she needed money.
“He had helped other employees who were in similar circumstances and they had come to an agreement on paying him back,” the officer said in his report.
Gonsalves became very emotional and started crying when the owner told her that she was fired.
The man became suspicious and realized that the situation might be worse than the missing $1,500, the report said.
The owner said he reviewed the business’ financial records and discovered alleged shortages totaling more than $30,000 from the period of March 2011 to March 2014, according to the officer’s report.
Story and Comments: http://www.whidbeynewstimes.com
Dual control system requires the authorization or approval of two individuals to complete a transaction. It’s that simple. One individual should not be responsible for an entire financial transaction from beginning to finish. Many small companies fall into the trap of having one bookkeeper handle all accounts payable and accounts receivable and write, sign, and deliver the checks. The dual control system puts a second set of eyes on transactions, greatly lessening the risk of embezzlement.
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