Budget Timing – Managerial Accounting
OK. Let’s make year end time better next year.
Can we track both business and personal financial information using QuickBooks?
Is it too late to start 2019 bookkeeping for the year?
No. Let’s get started.
How to learn both: • How to enter data into financial accounting software and • How financial accounting works The best way to learn the two objectives above is not as apparent as it may seem at first glance. One problem is that financial accountings software is designed to be able to separate duties and use forms to simplify the data input process, rather than entering the actual journal entries, the debits and credits. Once we know the financial accounting concepts, like the use of debits and credits, accounting software is a great tool to help us practice those concepts. The best way to learn financial accounting concepts, like debits and credits, is to work comprehensive problems in Excel. Let’s do both. Let’s work a comprehensive problem using debits and credits in Excel and work the same problem using accounting software (QuickBooks), and compare and contrast the two as we go. It will be great. http://bit.ly/2GsRXrQ
Process cost system will track the costs that go into the production of inventory. Those costs include direct materials, direct labor, and manufacturing overhead.
Inventory will first be purchased with a debit to material asset and credit to accounts payable or cash. The materials will then flow through to finished goods.
The materials will go into work in process WIP or overhead depending on whether it can be applied to a job. The materials going to WIP will debit work in process WIP and credit materials.
The materials going into overhead will debit overhead and credit materials.
Work in process will be increased by overhead applied to it and direct labor. Direct labor will debit work in process WIP and credit wages payable or cash.
Overhead will go into work in process with a debit to work in process and a credit to overhead.
Work in process will then move to finished goods with a debit to finished goods and a credit to work in process.
When sold the finished goods will move to cost of goods sold with a debit to cost of goods sold and a credit to finished goods inventory.
Can I track my personal accounting data using QuickBooks? Yes! Is there an easier software to use? No! Why does it seem more difficult to understand personal accounting then business accounting? Because the objective of a business is much clearer; the generation of revenue, while the objective of a life is much messier; the generation of. . . or, to be . . . or, to achieve. . . uh, fill in the blank ____ __. No software can create a standard set of accounts that line up to everyone’s personal goals and objectives, so if we want personal financial data, we can’t just depend on software. We will have to do it ourselves. Let’s get started. Link to course with discount https://bit.ly/2Z2LNWN
How to make data entry easier
What are Tax Refunds? Tax, Slightly Cynical, Talk Why do business owners have to pay payroll taxes? Note that the content is meant to be educational, only. Explanation: We often learn best with images and with a story, and a story needs memorable characters with strong characteristics. Thinking about tax law and the tax code as an interplay taking place over time between a greedy tax collector and hard working business person or employee can provide content to help memorize the law and make the process more fun. This information is not designed to promote a political opinion or to talk down about a person, party, or organization in particular even though the government and the IRS will typically be the bad guy. In reality, the IRS is an institution that is part of a democracy and does not represent one character with greedy intentions but is rather much more complex.
Financial Accounting 3 – Accounting Concepts Continued More Info: Financial Accounting # 1 Link – Accounting equation, debits & credits, adjusting entries, closing process, & inventory transactions. https://youtu.be/slbij2ovIf8 Financial Accounting #2 – Inventory Flow (FIFO, LIFO. . . ), Subsidiary Ledgers (AR AP), Cash & Bank Reconciliations, Allowance method (AR), Depreciation https://youtu.be/B8R7i_GhX-0 Links to points in presentation. Payroll 1:28 Payroll Introduction 7:31 Regular & Overtime Pay Calculation 12:42 20 Federal Income Tax FIT 18:59 Payroll Legislation 27:49 Payroll Consideration and Tax Forms 44:08 Payroll Periods and Time Frames 51:13 New Employee Tax Forms & Contractor vs Employee 1:08:28 Federal Income Tax FIT – Percent Method 1:16:11 Federal Income Contributions Act (FICA) 1:24:17 Social Security Tax Calculation 1:30:27 FUTA, SUTA Workers Compensation 1:35:20 Medicare Tax Calculation 1:38:51 Federal Unemployment Tax Act Calculation 1:40:26 Payroll Ethics & Practices 1:51:02 Employer Taxes Calculation 1:58:21 Employer Responsibilities and Processes 2:06:12 Payroll Expense Journal Entry 2:16:52 Payroll Tax Expense Journal Entry 2:25:09 Pay Payroll Tax Expense Journal Entry 2:34:00 Form 941 2:48:29 Payroll Controls and Documentation 2:56:41 Form 940 3:08:16 Form W-3 & W-2 3:20:13 Reconciling Year End Payroll Forms 3:29:32 Minimum Wage & Nonexempt Employees 3:35:05 Payroll Calculations 3:37:51 Overtime Calculation 3:50:45 Payroll Register 4:00:26 Fringe Benefits 4:06:34 Federal Income Tax (FIT) 4:11:56 Other Deductions & Payment Methods 4:20:04 Taxes Employer Employee 4:29:25 FICA Employer 4:34:22 Federal & State Unemployment Tax Partnerships 4:43:41 Partnerships Introduction 5:04:33 Partnership Set Up New Partnership 5:15:48 Partnership Income Allocation 5:35:52 Partnership Withdraws 5:45:55 Partnership Closing Process 5:58:15 Partnership Partner Leaves Partnership Cash Equal to Capital Account 6:01:58 Partnership Partner Leaves Partnership Cash less then Capital Account 6:09:20 Partner Leaves Partnership Cash Greater then Capital Account 6:15:45 Add New Partnership – Cash More Then Capital Account 6:25:08 Add New Partner – Cash Less Then Capital Account 6:40:34 partner sells partnership interest to a new Partner 6:50:39 Partner sells partnership interest – Cash Received Less Then Capital 6:56:14 Partner sells partnership interest – Cash Received Greater Than Capital 7:03:14 Partnership Liquidation Gain on sale of Assets 7:20:08 Partnerships Liquidation Loss on sale of Assets 7:34:05 Partnership Liquidation Partner Pays Partnership for Negative Capital Account 7:53:29 Partnership Liquidation Partner Does Not Pays Partnership for Negative Capital Account Corporations 8:13:35 Corporation Introduction 8:41:09 Stock for Cash 8:54:05 Issuing Stock for Non-Cash Asset 9:04:42 Dividends Overview 9:15:10 Cash Dividends 9:24:57 Stock Dividends & Stock Split 9:35:33 Preferred Stock Introduction 9:41:48 Preferred Stock Example 9:51:19 Treasury Stock 10:08:49 Statement of Retained Earnings 10:21:46 Corporations Statement of Stockholders Equity 10:45:47 Corporation Closing Process 11:01:35 Corporations Earning Per Share Because it’s fun. This may not be the first thing that enters everyone’s mind when asked this question, but hear me out, make an honest effort to learn the first two chapters, and then make your decision as to the validity of the statement that accounting is fun. There are, of course, many practical reasons to learn accounting including: • Accounting has been described as the language of business. Whether we work for a company or own a business accounting helps us understand the business. It can help us see the big picture. • Accounting principles are applicable to our personal finances. Whether we have a large or small amount of resources we still need to manage our personal finances. • Accounting helps with investing. When investing for things like retirement we may consider investing in stocks and bonds. Accounting helps understand the financial statements of companies to make better investment decisions. Other reasons for learning accounting, which may not be so evident, are that accounting develops critical thinking, logic, and practical decision making skills. These skills can be applied to all areas of life. Accounting also provides the same kind of a sense of satisfaction we receive when we complete a puzzle, master a new musical pattern, or play a game of checkers. We get that same shot of dopamine when we can say we figured it out and “it’s in balance”. Accounting is comparable to setting up and playing a checker game. Checkers are set up on a spreadsheet, in accordance to a set of rules, and we move the pieces in accordance to a set of rules. Once these rules are leaned the game can be enjoyable. Accounting will have a similar set of rules, a similar board, and yes, once the rules are learned, it can be enjoyable. Items needed for setting up and
Financial Accounting #2 – Intermediate Accounting Concepts Financial Accounting # 1 Link – Accounting equation, debits & credits, adjusting entries, closing process, & inventory transactions. https://youtu.be/slbij2ovIf8 Links to relevant parts of the presentation. Inventory Costs – FIFO LIFO Weighted Average 1:14 Inventory Tracking 6:52 Inventory Methods Explained and compared FIFO LIFO Ave 15:23 Inventory Costs 24:02 Consistency Concept 27:48 Lower of Cost or Market 31:52 Perpetual & Periodic Inventory Systems 42:06 First In First Out (FIFO) Periodic System 1:16:23 Last In First Out LIFO Periodic 1:50:33 Weighted Average Periodic System 2:19:40 First In First Out FIFO Explained 2:28:52 Last In First Out LIFO Inventory Method Explained 2:36:33 Average Inventory Method Explained Subsidiary & Special Journals 2:43:36 Special Journals Subsidiary Ledgers 2:59:38 Accounts Receivable AR Subsidiary Ledger Explained 3:08:38 Accounts Payable AP Subsidiary Ledger 3:16:30 Sales Journal Service Company 3:25:46 Sales Journal Merchandising Co. 3:36:25 Purchases Journal Service Company 3:40:26 Purchase Journal Merchandising Co. 3:52:40 Cash Receipts Journal 4:15:19 Cash Payments Journal Service Company 4:28:59 Cash Payments Journal Service Company Cash, Bank Reconciliations, & Cash Internal Controls 4:28:59 Internal Controls 4:47:57 Cash Internal Controls Overview 4:55:58 Cash Receipts Internal Controls 5:04:05 Cash Disbursements Internal Controls 5:15:12 Bank Reconciliation-Accounting%2C Financial 5:31:50 60 Petty Cash Accounts Receivable – Allowance Method & Direct Write-Off Method 5:51:55 Receivables Introduction 6:07:18 Accounts Receivable Journal Entries 6:17:23 Accounts Receivable AR Subsidiary Ledger Explained 6:26:23 Direct Write Off Method 6:46:20 Allowance Method Accounts Receivable-financial accounting-Accounting%2C Financial 7:16:57 Allowance Method VS Direct Write Off Method 7:37:34 Allowance Method % Accounts Receivable vs % Sales Method 7:56:34 Notes Receivable 8:21:00 Interest Calculations 8:41:18 90 Interest Calculations Depreciation Calculation & Fixed Assets 9:01:42 Property Plant & Equipment 9:12:56 Property Plant & Equipment Lump Sum Purchase 9:18:52 Calculating Depreciation Straight Line – how to calculate 9:50:07 Calculating Depreciation Double Declining Balance – how to calculate 10:28:35 Calculating Depreciation Units of Production – how to calculate 11:02:26 Change In Estimates 11:12:47 Disposals Fully Depreciated No Cash Received 11:20:20 Disposal Fully Depreciated & Cash Received u 11:27:58 Disposal – Not Fully Depreciated 11:36:24 Disposal Not Fully Depreciated & Cash Received 11:45:02 Partial Year Depreciation