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have a question about bookkeeping. I use GoDaddy bookkeeping. During the first few weeks from when I started to sell my first product my account had negative balance. So, my account charged for example after the two first weeks in $50. In the expenses ta

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have a question about bookkeeping. I use GoDaddy bookkeeping. During the first few weeks from when I started to sell my first product my account had negative balance. So, my account charged for example after the two first weeks in $50. In the expenses tab I see two transactions for this, one with $50 (for charge) and one in -$50 (for payment) which sign that I paid for this amount.

My question is what shoud I do with the advertising fees. Advertising fees paid directy from my CC and not included in the general balance. So, I add manualy expenses transaction for each advertising payment. The question is if I need to do the same as above and create two transactions for each advertising fees payment one for the charge (in +) and one for the payment (in -)?

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Is this your business credit card? I mean how you pay for this credit card?

If you pay for this credit card from your personal account than this transaction will have 2 effects

1. You will treat it as an expense
2. increase your owner capital account.

( you deal with the liabilities personally, so do not record it in your accounting system)

If you pay for this credit card from your business account than this will be treated as an expense and also you need to record as the liability. (Once you paid for this credit card than you have to reduce the liability account)

This treatment is as per the international accounting standards. USA accounting standards can be different.

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