Cash Basis
Accounting
Businesses
using the cash method of accounting with MacNail construction
accounting software, can use the Ledgers for tax accounting.
NOTE-- In 2000, MacNail was replaced by
Goldenseal construction
accounting software. Goldenseal is an integrated program that
includes general accounting, job costing, payroll and
project billing, plus estimating and other features. Goldenseal
supports both cash and accrual accounting systems.
Be sure to date each deposit
or payout at the actual date that the item was deposited or paid out.
The safest way to get tax information
from the Ledgers is as follows:
1. Check for erroneous dates in each of the Ledgers used during the tax year (see pages 97 and190).
2. Make a Financial Report for the previous year, using all files in folder (unless you only used
one ledger).
3. Click in the upper left cell of the large list of extracted items (below the list of projects).
4. Scroll down to the bottom of the list of extracted items, scroll to the far right column, hold
down the shift key, and click in the lower right corner of the list. The entire list should be
selected (darkened).
5. Choose Sort from the DATA menu, and click first in the job number column. Click in the 2nd Key
box, then click in the category column of the worksheet. Click OK.
6. Scan through the list of expenses, and change any erroneous items. When all items look correct, repeat
steps 4 and 5.
7. Use Excel's =sum() formula to get total costs for each cost category in job 99 (except for those with a type
of L). These are your itemized office overhead costs. You may want to cut and paste each block of expenses to a new
worksheet, for tidier documentation of your tax expenses.
8. Repeat the sorting in steps 4 and 5, using the job number column as 1st Key, and the type column as 2nd
Key. Use =sum() to get the total of all labor. This is your cost to enter in the wages column.
9. Use =sum() to get the total of all non-labor costs not in job 99. This is your total for gross expenses.
10. Use =sum() to get the total of all deposits. This is your gross income.
|
