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Posted by Victor Roberts on December 12, 2006, 2:35 am
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>> I lay myself when I have money, which
>> means perhaps no paycheck in January or February, then
>> quarterly unless the company is flush and pays more
>> frequently and then a check on the last business day in
>> December to finish off the year.
> Presumably "lay myself off". Or is your business much more
> exciting than mine?
You missed my correction. I meant to say that I pay myself
when the company has enough money
> I'd love to do this, but the terms of our health insurance
> policy state that it's only available to employees working
> more than 30 hours/week. So we crank out a check every month
> to be sure we'd survive an insurance company audit.
>> The OP also needs to pay off any company credit card bills
>> and make sure that she doesn't leave more money as "profit"
>> sitting in the company bank account than necessary.
> Why? Aren't CC balances treated as short-term loans? I was
> under the impression that CC purchases hit the books on the
> day you use the card, regardless of whether you are using
> cash or accrual methods of accounting.
We agree that credit card purchases are treated as expenses
as soon as they are posted to our account by the credit card
company. As to why they should be paid at year end (for a
Cash Basis business) I will defer to the pros here. We pay
them off because our account says we should. Perhaps he
does not trust QuickBooks to put list all those charges as
expenses, but I just checked and all unpaid credit card
charges show up as expenses on my P&L report.
--
Vic Roberts
Replace xxx with vdr in e-mail address.
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