Accounting for your Home Business – Home Business Carnival #7

Today’s topic is accounting. Hmmm, buy more about not a subject many people like to blog about, seek it seems. From some of the people I’ve talked to while putting this edition together, dosage they either don’t like to talk about it, don’t have anything to say on the subject, or that’s the first thing they get someone else to help them with it.

My favorite submission for this edition of the Home Business Carnival was sent to us by Gina from Gina’s Tax blog. In her post, Deduct New Business Costs, she explains how you can deduct some of the costs of starting a new business, even before your business is up and running. Definitely something to keep in mind for your next venture.

Is there a difference between an expense and a cost? Not sure? Well, me neither, at least till I read Accounting Coach explanations: What’s the difference between a cost and an expense. Hint:

Accountants use the term expense to mean a cost that has being used up while a company is doing its main revenue-generating activities…A cost may or may not be an expense…

While we are on the subject of technicalities, Isabel of Power HomeBiz Small and Home Business Blog explains depreciation, or in other words how to account for an asset with a limited life.

Is your favorite accounting system a shoe box? Then you need a better system. Head over to Darell Zahorsky‘s page: 8 Reasons to Ditch Your Shoebox Accounting System. In my book, most 2 telling signs: Expense Creep and Overdue Accounts!

In this day and age, you can use a computer for almost anything, so this edition would not be complete without a review of accounting softwares:

My top 2: Quicken Home&Business as an ideal choice for a small or starting business of one. Microsoft product is also a great choice. For the full reviews, check out Susan Ward page.

Thank you everyone who contributed! If you’d like to host an upcoming edtion, drop me a note.

Edition #8 will be the Halloween edition (next Monday 10/30). So this is the be spooky Home Business Carnival Edition and tell us if Halloween is good for your business! It will be hosted here. As always Submit your articles now.

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