Creative accounting

Derek Atkins warlord at MIT.EDU
Wed Oct 2 11:06:42 EDT 2013


Mike or Penny Novack <stepbystepfarm at mtdata.com> writes:

>>  The issues was how to take the Rent: Business and pass to the AR:
>> Client so that it would reduce the overall receivable so that is
>> would be my billed time - Rent: Business and that would reflect
>> properly. 
>>
>> So the questions was one of professional advice, but more an issue
>> of how to encode the information in GC.
>
> I'm afraid you didn't understand the gist of my questioning the
> propriety of answering your question.
>
> No, I cannot tell you whether that rent is a business expense or a
> personal expense (according to the rules of the jurisdictions to which
> you pay taxes) nor whether or how you might use "creative accounting"
> to change how appeared in your books as opposed to how should
> appear. Certainly not going to make suggestions about that in a public
> forum.
>
> Understand now? You are working for somebody and they want to pay you
> partly in cash and partly by giving you a discount on your rent. To me
> that means you have questions way beyond "how do I enter using
> gnucash?". To me the first questions to be asked are about how you
> might want to make the transactions appear to the tax man.

My suggestion would be to record the full invoice for the full amount;
then you can "Process Payment" for the Rent, and then send a printout of
the Invoice that includes payments (or you can send the Invoice along
with a Customer Report).  Note that IANAA so this is not accounting or
tax advice.

> Michael

> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available


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