Business acct.

[Maf. King]

On Fri 27 April 12 10:46:13 you wrote:
> Thank you. You've got me thinking.  
> 
> 1. Dummy bank acct.in Notary books is good.
> 
> 2. Instead of a Liability acct.Loaned by Trenton, (which sounds to me, as 
> something I have to 'pay back) what if I had a Payable acct. to Trenton and
> a personal Notary Income from TPH

Hi,

I'm still a little confused about your set-up, I don't exactly know what a 
Notary does - AKAIK in the UK it is a type of lawyer, for witnessing or 
storing documents and legal matters - but I'm not sure where you are in the 
world, so it could be quite a different job where you are.

If you are running this as a fully fledged business in its own right then you 
can't just allocate money from the business to yourself.  It depends on your 
circumstances/local laws how you should treat this, in the UK it could either 
be salary or owner's drawings.  

The reason I said liability account is that the business "loans" you the money 
for you to "look after" in your personal bank account - but the money still 
"belongs" to the business - until you use it to buy stuff, give some of it 
away as tax, and some as salary/drawings etc. As I said,exactly how you do it 
depends on local matters.

> Yes, this is 2 separate entities that I have on my income tax. 
It sounds as though under UK tax law this probably would be one entity.  
A separate business or partnership etc. would do its own tax return, and the 
person would also do an income tax return (showing the income/drawings taken 
from the business), but a "freelance worker" type arrangement, (maybe you do 
this just as a sideline to a main job, or maybe you have retired from full-
time work)  would be a couple of exta figures on the personal return. 

> The program
> that I mentioned before does keep track of everything except, it works on
> an accrual basis not cash, so it requires me to correct money income at the
> beginning of the year, since I might not get paid for work in Nov.or Dec,
> until Jan or Feb.  GC would be a more accurate accounting.  OR
>                                                           3. Just record
> Notary income in the Personal Income, period.and then to ck/sav.or cash.
> 
Yep, I think that a simple Income:NotaryEarnings and possibly a handful of 
Expense:Notary:foo accounts might be enough for you, if this is a sideline...  
I suggest a quick chat with a tax professional in your area to establish how 
the authorities view your status might be a good idea, GC will work either 
way, but it will be a whole lot easier to start out on the right track...

I'm not a tax professional in any jurisdiction!

Have a good weekend,
Maf,