Summary

We covered budgets and several business-specific bookkeeping topics in this chapter.

Specifically, we covered:

• Budgets: We noted that budgets are called forecasts or projections at times. We looked at why budgets are needed, how to create them, and how to create reports showing budget vs. actual comparison.

• Employees and Payroll: Payroll accounting is complex because of the many deductions and the company's contributions. We saw how to make it easier to create them and how to use the Duplicate Transaction capability to reuse them.

• Depreciation: Tax law allows capital purchases such as office machines and furniture to be written off over a period of time. We saw how to account for the allowed monthly depreciation.

• Owner's draw: US tax law doesn't allow owners to draw a salary as a business expense. So, the way for the owners to pay themselves is through owner's draw. We showed how to account for that and to make sure that self employment tax is provided for as well.

Now that we've covered...