Owner Operators - Paying yourself a wage and keeping your books up to date

Ontario Outlaw

Hozer Witta Hood
Let me ask this a different way-

If you buy fuel at the end of the month, but don’t see the invoice until the next month- shouldn’t the fuel that was purchased and use be recorded in the first months numbers?
 

mndriver

curmudgeon extraordinare
Supporter
Doesn't matter what method you choose.

The IRS uses it as a red flag if you switch from year to year.
 

Mike

Well-Known Member
Staff member
Let me ask this a different way-

If you buy fuel at the end of the month, but don’t see the invoice until the next month- shouldn’t the fuel that was purchased and use be recorded in the first months numbers?
I record it on the date it was purchased, as I do anything.
 

mndriver

curmudgeon extraordinare
Supporter
Let me ask this a different way-

If you buy fuel at the end of the month, but don’t see the invoice until the next month- shouldn’t the fuel that was purchased and use be recorded in the first months numbers?
Again.....

Cash vs accrual accounting methods. Once you start one, you have to stick with it.

Both are GAAP
 

Ontario Outlaw

Hozer Witta Hood
Ok I have another question-

If I buy something on July 15, some companies start to charge interest on it after July 30th, my end of month statement date.

Yes, I understand accounts past 30 days old get charged interest on past due accounts. But that one invoice is only two weeks old. That doesn’t seem right to me? :confused-96:

Edit- just to be clear, invoices usually say “interest of x% will be charged after 30 days”
 

ironpony

Professional Pot-Stirrer
Supporter
Generally Accepted Accounting Principles.
And we generally accept that doing our accounting one way or the other will bring less awkward questions in an audit, than trying to play Chinese menu with those accounting practices.
 

Electric Chicken

Well-Known Member
Supporter
And we generally accept that doing our accounting one way or the other will bring less awkward questions in an audit, than trying to play Chinese menu with those accounting practices.
Yeah whatever you choose, stick with it. At least for a while. Then have a damn good valid reason for the switch to explain to the auditors.
 

Ontario Outlaw

Hozer Witta Hood
Ok I have another question-

If I buy something on July 15, some companies start to charge interest on it after July 30th, my end of month statement date.

Yes, I understand accounts past 30 days old get charged interest on past due accounts. But that one invoice is only two weeks old. That doesn’t seem right to me? :confused-96:

Edit- just to be clear, invoices usually say “interest of x% will be charged after 30 days”
What You Need to Know About Invoice Payment Terms | QuickBooks Canada

Ah. Ok. It depends on how they’ve set up their invoicing :cautious:
 

mndriver

curmudgeon extraordinare
Supporter
Invoice Discount is just another form of factoring or QuickPay.

 

Ontario Outlaw

Hozer Witta Hood
Invoice Discount is just another form of factoring or QuickPay.

The heck you going on about now?
 

Mike

Well-Known Member
Staff member
Ok I have another question-

If I buy something on July 15, some companies start to charge interest on it after July 30th, my end of month statement date.

Yes, I understand accounts past 30 days old get charged interest on past due accounts. But that one invoice is only two weeks old. That doesn’t seem right to me? :confused-96:

Edit- just to be clear, invoices usually say “interest of x% will be charged after 30 days”
That isn't right. I would bring it up to them to have them correct it, or let them know I was finding a different place to do business.
 

Ontario Outlaw

Hozer Witta Hood
That isn't right. I would bring it up to them to have them correct it, or let them know I was finding a different place to do business.
Apparently, it “could” be illegal to charge interest on accounts past due, except if it’s terms in a contract signed by both parties. Also, there’s limits on interest rates chargeable not to exceed set limits on a yearly amount.

I’m waiting for my accountant to get back to me on this.

But I agree with you. Thanks
 

Moneywheel

New Member
Just starting out how can u find a good account that is dam good at keeping ur business books together and clear...I was also thinking of getting an laptop and excel spreadsheet to input everything....isn't easy to learn how to use the excell efficiently??thanks drivers
 

jimmywells

Well-Known Member
Just starting out how can u find a good account that is dam good at keeping ur business books together and clear...I was also thinking of getting an laptop and excel spreadsheet to input everything....isn't easy to learn how to use the excell efficiently??thanks drivers
I literally just write everything that comes in and out inside a composition notebook. At the end of the month, I add it all up. I also make note of how many per diem days for the month as well. It helps me with tax planning tremendously. I can't see paying someone else to do such a simple thing for me.
 
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