It’s been a busy spring at Shoebox-Be-Gone! We attended the National Women’s Show and met wonderful ladies, participated in a Fuchsia Factory Inc. event and have started redesigning our website. And who has time for “Facebooking”? Apparently, everyone and their mother!
Social media has become such an important networking tool, and our team has now joined ship. Check out our Facebook page and ‘like’ us for news, tips, events, and specials. ‘Till next month,
~ The Shoebox-Be-Gone Team
SOLUTIONS: FOCUSING ON EXPENSES
3 Steps to Managing Personal Credit Cards And Business Expenses
Are you a self-employed professional using your personal credit cards for business expenses? Not quite sure how to track it all in your accounting software? Good news! It can be done quickly and easily; no need for multiple journal entries, complicated bank account set ups and hours spent imputing data. Keep reading to discover the 3 steps to managing this bookkeeping task.
Step 1: The Spreadsheet, Simplified
You’ll need to set up a spreadsheet to simplify your journal entry. You’ll need columns for ‘Date’ and ‘Description’, and each type of expenses (gas expense, meals & entertainment, office supplies, etc); you’ll also need one for GST/HST and interest expense.
Grab your first receipt; in a new row, type in the date and description in the proper column. Determine what type of expense it is – enter the net amount in the proper expense column and the GST/HST in the tax column. Lather, rinse & repeat until you’ve entered all your business receipts, including an entry for the portion of interest that relates to your expenses. Once you’ve calculated the sums for each column print your spreadsheet and staple it to your statement (along with all your receipts). You are now ready to prepare your journal entry. I promise it’s not as scary as it sounds!
Step 2: The Journal Entry
Journal entries aren’t that scary if you know your debits and your credits. “But I DON’T know my debits and credits!” I can assure you there’s no need to fret; follow my instructions and you’ll soon be posting entries like a pro!
Make sure you have “Accounts Payable” set up and add your credit card provider as a vendor. Open a new journal entry and enter the following details.
In the “Account” column, enter the first expense account; in the “Debit” column, enter the corresponding amount from your spreadsheet. Continue entering all the expenses, including GST/HST and interest, as debits. Next, in the “Account” column, enter “Accounts Payable”; in the “Credit” column enter the total of all your debits and in the “Name” column choose your provider’s name. Click “Save” and Voilà! Your journal entry has been posted.
Step 3: Posting Your Payment
The hard part is done – not only have you successfully posted your credit card transactions, but you’ve also made a payment to your provider. Posting that payment is very simple! Just like before, you’ll open a new journal entry. In the “Account” column you’ll choose “Accounts Payable”; you’ll enter the amount of your payment in the “Debit” column and the name of your provider in the “Name” column. Next, you’ll choose the account “Bank” and enter a “Credit” totalling the amount of your payment. Save and you’re done!