Accounting & Bookkeeping & Small Business Forum

Small Business Forum / Work From Home Forum :: RE: Average transactions per hour?

Author: stasia2003
Subject: Re: Average transactions per hour?
Posted: Thu Jul 24, 2008 7:48 pm (GMT -7)
Topic Replies: 1

dp1903 wrote:

Hi. I was wondering about how many transactions I should project per hour to be an average amount in order to calculate what my per hour earnings would be? I've estimated 45 to 60 an hour, but don't know what someone in business for themselves actually achieves.

Also, I've seen a range of suggested rates per transaction and it suggests adding $100 for financial statements. I'd love to be able to justify that amount, but on a monthly basis it sounds a little high. Using QuickBooks all I'd have to do would be to print the statements using QB or slightly modify them on a spreadsheet before printing. I was wondering what others charged for monthly financial statements and if there is anything I haven't thought about in regards to preparing them? Thanks.

This will help me more realistically be able to know what to expect earnings and profit wise. I guestimate that after all taxes and expenses my actual take home earnings would be somewhere in the 35% to 45% range of my gross revenue.

Well, 95% of my accounting business is virtual. I charge by the hour and most high quality customers have no problem with that. I also choose to charge hourly for my local people. Financial statements are generally rolled in with everything else if it's computerized. The UAC fee calculation is based on a manual accounting system so charging people an additional $100 for financial statements didn't quite sit well for me. If you want, you can still charge a fixed rate but include the financial statements then it may not seem so high.

If you are just starting out maybe just charge $25/hour. Then gradually start raising it once you get a taste of what the workload is like. That's what I do. One of my virtual clients is a $3 million dollar a year online business and he had ALOT of work because he had no accounting system in place. Even with me only currently charging him $15/hr(yes I know), he is very happy with my service. I will most likely raise the price after about 3 months.

Of course others here will probably have a different opinion.

Accounting and Bookkeeping Questions Forum :: RE: Journal entry crisis. Credits/Debits. Some help solving?

Author: stasia2003
Subject: Re: Journal entry crisis. Credits/Debits. Some help solving?
Posted: Thu Jul 24, 2008 7:41 pm (GMT -7)
Topic Replies: 2

MorningSky wrote:

Hey guys, I'm stuck trying to answer this problem.

Could any of you guys try to help me label the credits and debits to this problem? I'm bad at journal entries.

The question is as followed:

On January 1, 2007, Caldwell Corporation had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:

Mar. 1, Issued 45,000 shares of common stock for $675,000 total.
June 1, Declared a cash dividend of $2.00 per share to stockholders of record on June 15
June 30, Paid the $2.00 cash dividend previously declared on June 1.
Dec. 1, Purchased 4,000 shares of common stock for the treasury for $18 per share
Dec. 15, Declared a cash dividend on outstanding shares of $2.50 per share to stockholders of record on December 31

Instructions:

Prepare journal entries to record the above transactions. Clearly label debits with DR and credits with CR and be sure to put the date for each transaction.

I can't really help you too much even though I was an accounting major. I hated recording stocks/securities.

I won't give you the entire answer because if I had to suffer through this, so do you.

When you issue stock, it's a debit to cash and a credit to Common/Preferred Stock.

When you declare a dividend, it's a Debit to Dividends and a Credit to Dividends Payable.

To pay the dividends, Debit Dividends Payable and Credit Cash.

To purchase treasury stock, it's a Debit to Treasury Stock and a Credit to Cash.

I probably just gave you 90% of the answer but take it and run with it.

Accounting and Bookkeeping Questions Forum :: RE: Journal entry crisis. Credits/Debits. Some help solving?

Author: MorningSky
Posted: Thu Jul 24, 2008 6:06 pm (GMT -7)
Topic Replies: 2

Please help. Anyone?

Small Business Forum / Work From Home Forum :: Average transactions per hour?

Author: dp1903
Subject: Average transactions per hour?
Posted: Thu Jul 24, 2008 5:56 pm (GMT -7)
Topic Replies: 1

Hi. I was wondering about how many transactions I should project per hour to be an average amount in order to calculate what my per hour earnings would be? I've estimated 45 to 60 an hour, but don't know what someone in business for themselves actually achieves.

Also, I've seen a range of suggested rates per transaction and it suggests adding $100 for financial statements. I'd love to be able to justify that amount, but on a monthly basis it sounds a little high. Using QuickBooks all I'd have to do would be to print the statements using QB or slightly modify them on a spreadsheet before printing. I was wondering what others charged for monthly financial statements and if there is anything I haven't thought about in regards to preparing them? Thanks.

This will help me more realistically be able to know what to expect earnings and profit wise. I guestimate that after all taxes and expenses my actual take home earnings would be somewhere in the 35% to 45% range of my gross revenue.

Accounting and Bookkeeping Questions Forum :: RE: Balance sheets and Payroll

Author: dp1903
Posted: Thu Jul 24, 2008 5:33 pm (GMT -7)
Topic Replies: 5

Sorry, I tried to show more of what a real payroll would look like, but left out the Employer's payroll tax expense. I'll do it over with numbers.

Wages or Salaries Expense $10,000.00 [Debit in August]
Employer's FICA Tax Expense 765.00 [Debit in August]
Employer's FICA Tax Payable 765.00 [Credit in August]
Employee's FICA Tax Payable 765.00 [Credit in August]
Federal Income Taxes Payable 2,000.00 [Credit in August]
Other deductions Payable 0.00 [Credit in August]
Wages or Salaries Payable 7,235.00 [Credit in August]

All these expenses and liabilities are incurred in August and, therefore, show up on the income statement or balance sheet in August as a result on an accrual basis. The Employee's share of FICA Taxes and Federal Income Tax is taken out of the gross amount of wages so that the net pay is only 7,235.00. The Employer's FICA Tax Expense is calculated at 7.65% of the employees' wages. 6.2% is social security and 1.45% if medicare. On a real payroll these might be broken out seperately. I posted them together for simplicity.

Federal Income Tax comes out of the employee's gross pay. It is part of gross wages or salaries expense. Hope that is clearer.

You may also have federal and state unemployment tax expense and liabilities, an employer tax expense, depending on the amount of wages that has been paid thus far during the year, but I left those out to make it simpler.

Accounting and Bookkeeping Questions Forum :: Journal entry crisis. Credits/Debits. Some help solving?

Author: MorningSky
Subject: Journal entry crisis. Credits/Debits. Some help solving?
Posted: Thu Jul 24, 2008 5:30 pm (GMT -7)
Topic Replies: 2

Hey guys, I'm stuck trying to answer this problem.

Could any of you guys try to help me label the credits and debits to this problem? I'm bad at journal entries.

The question is as followed:

On January 1, 2007, Caldwell Corporation had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:

Mar. 1, Issued 45,000 shares of common stock for $675,000 total.
June 1, Declared a cash dividend of $2.00 per share to stockholders of record on June 15
June 30, Paid the $2.00 cash dividend previously declared on June 1.
Dec. 1, Purchased 4,000 shares of common stock for the treasury for $18 per share
Dec. 15, Declared a cash dividend on outstanding shares of $2.50 per share to stockholders of record on December 31

Instructions:

Prepare journal entries to record the above transactions. Clearly label debits with DR and credits with CR and be sure to put the date for each transaction.

Accounting and Bookkeeping Questions Forum :: RE: Balance sheets and Payroll

Author: stasia2003
Posted: Thu Jul 24, 2008 5:23 pm (GMT -7)
Topic Replies: 5

mperor3 wrote:

dp1903 wrote:

Quote:

What if "company A" paid their employee for the pay period of 15-31 of August but wrote checks to them on the 5th of September, for that pay period.

Would August's balance sheet have a payroll liability account?

On an accrual basis, Yes, August's balance sheet will show wages and payroll taxes payable.

Wages or Salaries Expense [Debit in August]
FICA Tax Payable [Credit in August]
Federal Income Taxes Payable [Credit in August]
Other deductions Payable [Credit in August]
Wages or Salaries Payable [Credit in August]

So, on the income statement for August the Wages Expense shows up because that is when the expense was actually incurred even though not paid. On the balance sheet the Payroll Liabilities show up in August since that is the month they were incurred, though not paid.

On Cash basis accounting you would not accrue the above but only record the transaction in September when it occurs.

So, on the income statement, there would not be a payroll tax expense? Salaries expense is there because it happened on that month but since that pay period hasn't been paid yet, than that payroll tax account shouldn't show up on the income statement?

Actually payroll taxes will show up on the income statement. You have to record FICA for the employer and other employer paid deductions.

Accounting and Bookkeeping Questions Forum :: RE: Balance sheets and Payroll

Author: mperor3
Posted: Thu Jul 24, 2008 4:54 pm (GMT -7)
Topic Replies: 5

dp1903 wrote:

Quote:

Work at Home, Self Employed Forum :: RE: Trying to find more deductions

Author: trarob
Posted: Thu Jul 24, 2008 3:59 pm (GMT -7)
Topic Replies: 4

Charitable contributions-make sure you get a year end statement to support what you have given

Maximize your 401K contributions to lower your taxable income

Have your wife start a home business. Mary Kay, Avon or even a small day care or become a home school teacher for others.
_________________
Tracia L. Roberts, MBA, CPB
Virtue Business Consulting, LLC
"first class accounting, tax and business services"
www.virtueconsulting.net
www.virtueconsulting.blogspot.com

Small Business Forum / Work From Home Forum :: RE: Writing checks for clients

Author: dp1903
Posted: Thu Jul 24, 2008 11:18 am (GMT -7)
Topic Replies: 6

The point is Paycycle is used by CPA offices as well as self-employed bookkeeping/accounting entrepreneurs to write checks for their clients. It gives you the capability to "print checks or make direct deposits".

If being sued for errors is a concern I would suggest taking out "errors and omissions" insurance or consult with your insurance agent for coverage for such an event.

Accounting and Bookkeeping Questions Forum :: RE: 1099 contractor

Author: dp1903
Posted: Thu Jul 24, 2008 11:01 am (GMT -7)
Topic Replies: 10

I came across this info today. It looks like that if the cell phone is used exclusively for business that it is NOT considered listed property and you DO NOT have to keep track of all usage. In this case, it would make sense to me to EXPENSE the cost of the cell phone itself rather than capitalize it in most cases, assuming the cost is $500 or less. A section 179 deduction would accomplish this.

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

See page C-4, right column under "Exceptions".

Quote:

Last but not least, the IRS can put up all the color flags they want, your client has the documentation to prove that the costs he deducted are indeed all business related to HIS/HER business.

I think we already established that the costs deducted were NOT all business related since the cell phones were used by the subcontractors for other businesses as well. In addition, if you take out, i.e. reimburse yourself, for the cost of the cell phone usage from what you pay a subcontractor then you have no legitimate business expense deduction for any of the cell phone usage. [/quote]

Work at Home, Self Employed Forum :: RE: 941

Author: RobJ
Posted: Thu Jul 24, 2008 10:33 am (GMT -7)
Topic Replies: 4

Richard Noot wrote:

Effective Jan 1st the 941c will be obsolete,
All 941 943 944 and 945 will use the new 94X form

"Headliner Volume 226
March 11, 2008

The IRS is looking for stakeholder input on a new form and process, planned to begin in 2009, that will improve the way employers and payers correct errors on previously filed employment tax returns.

The agency has posted a “vision draft” of new Form 941X, Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund, for public review. Proposed regulations establishing the new process for making interest-free adjustments for both underpayments and overpayments, and clarifying the process for claiming refunds are in Internal Revenue Bulletin 2008-4 (See REG-111583-07). Comments on both the draft form and the proposed regulations are due March 27, 2008.

After finalizing the new Form 941X, the IRS will continue developing additional forms for the remaining returns in the employment tax series. The entire set of forms will be available in early 2009 for use in correcting errors on employment tax returns discovered on or after Jan. 1, 2009."

http://www.irs.gov/businesses/small/article/0,,id=179968,00.html

Work at Home, Self Employed Forum :: RE: 941

Author: Richard Noot
Posted: Thu Jul 24, 2008 9:48 am (GMT -7)
Topic Replies: 4

HeyKen wrote:

941c

Effective Jan 1st the 941c will be obsolete,
All 941 943 944 and 945 will use the new 94X form

Accounting and Bookkeeping Questions Forum :: RE: stolen equipment on profit & lost statement

Author: Richard Noot
Posted: Thu Jul 24, 2008 9:39 am (GMT -7)
Topic Replies: 5

If there was insurance then a claim MUST be filed otherwise it is considered a personal non deductible loss. Proof must be maintained that the item was indeed purchased and paid for. If you do not have a receipt for the purchase I would get a statement from the seller that the item was indeed purchased delivered and paid for.

Small Business Forum / Work From Home Forum :: RE: Writing checks for clients

Author: Richard Noot
Posted: Thu Jul 24, 2008 9:30 am (GMT -7)
Topic Replies: 6

dp1903 wrote:

Quote:

Sorry I am still sticking to my post. I do not know of any thoughfull business that is going to hire a firm to do their checkwriting.

Well, almost all the CPA offices in my city of 100,000 do payroll and write payroll checks for at least some of their clients. I think this practice is widespread. Who else knows how to compute the correct FICA, withholding taxes, etc. but someone who knows bookkeeping or accounting? Most business owners don't know how to nor want to spend the time or expense of having to hire someone just for payroll. Many offices charge a flat rate weekly or per pay period, plus a fee per check. Check this out:

https://www.paycycle.com/external/home.jsp

Iam not sure of the point you are trying to make by referencing the paycycle website. Paycycle does NOT write checks for their clients.