"Double Dating" transactions?

[Bill Wisse]

Hi Dale

On Monday 30 August 2004 15:09, Dale Alspach wrote:
> I think this has been discussed previously. With the usual advice to call
> accountant if you really need to know how to do it right, I would put this
> on an accrual basis.

Some small businesses like myself have no accountant.

> As soon as you know that you are overpaying on your 
> tax withholding, you can start making transaction into an accounts
> receivable. Thus if you knew during 03 that you were overpaying the
> government $30 per month, you can make a transaction to credit the tax
> expense account $30 and debit the accounts receivable asset account. When
> the refund check arrives you credit accounts receivable and debit checking
> (or whatever). This will have the effect of giving you two different dates.

How would you know if you are overpaying withholding tax?
You normally find out at the end of the financial year.

I was the one who posted a message  "tax refund" on the list.
I got some suggestions how to deal with it but it still doesn't seem right.
On the one hand you'll have an asset: The Refund Money.
But would other account would I use?
I created a "Tax Refund 2003" account under the tax header, but this tax 
header, by itself, gives me a wrong figure because it takes away the refunded 
tax from the tax I already paid.
Maybe the best thing to do is leave it in a "suspend account " IAW bank it 
into your cheque account and use suspend account as the other account and deal 
with it properly later on.


-- 
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/bill at 169 west , 19 south.  
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