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Introduction ™

I can remember real well what my grandmother would say when her guests would load up more on their plate than they would eat. "Don't bite off more than you can chew." Or, "His eyes were bigger download quickbooks tool hub than his stomach." When I planned this article, I knew there was a lot of information, but doing all of it may have been 'biting off more than I could chew'. So, I am going to break this article up into two so that I can be fair to each and every one of you who may be struggling to figure out what to do with that last line in the edit accounts window. The first article will cover the Schedule C Income and Deductions part of the tax line and the second will examine the K1 and Balance Sheets along with the M-1 and the 8825A-E forms.

Remember that this is what I do for a living, so I have to know this information, I have to get excited about it, (yes I know, I need a hobby) because it's a big part of my practice. Don't feel bad if you happen to nod off in the middle of information about this or that section number, I will attempt to make this as informative and entertaining as the subject of taxation will allow. (The IRS doesn't like it when we have fun discussing taxes!)

II. Schedule C Income and Expenses.

Depending on the version of Quickbooks you have, you may or may not see the description 'Schedule C' in the tax line information. Regardless this is the place that you would put income and expenses for your business.

1. Gross Receipts or Sales - You may have as many income accounts as necessary and assign this tax line to them. Whether you call the accounts daily sales, or Credit Card sales, it is revenue brought in to the business by your daily activities.

2. Returns and Allowances - When you purchase items for your business, sometimes it becomes necessary to return them to the vendor. You can't delete the original entry or purchase information but you can record the return using this tax line because technically, though it is not revenue, it is income, because your money is being returned to you.

3. Other Income - This covers income not generated through sales or returns, interest on your business checking account (not investments, that is another line.) charges that you pass on to your clients, bounced checks, late fees, etc. This will help you distinguish what your business is generating on a regular operating basis and will help give you a more accurate picture of your finances.

4. COGS (Cost of Goods Sold) - Purchases - for those businesses that must purchase materials to construct or build products for their customers. A stool manufacturer for example must purchase the legs, the seat, the cushions separately and sometimes from different vendors. A retail store must purchase goods for resale. This is where those purchases must go.

5. COGS - Cost of Labor - These are not salaries, these are the costs of getting the product built and out to the customer. Subcontractors' labor, etc would go here.

6. COGS - Additional Section 263A Costs - This involves the capitalization of certain items of inventory in the possession of the company owner. The good news is that unless the business is producing more than $10,000,000 a year, chances are, this won't apply to you.

7. COGS - Other Costs - If it costs your business to get the item shipped to you or shipped to your customers, that's where this expense goes. Shipping marketing materials, or items for use in your business does not go here.

Deductions

8. Compensation of Officers/Shareholders - If you have your business set up to pay you a regular salary, that amount would go here. The good news is that most business owners who initially started their companies, if they have put a sizable investment in, can draw out some of their 'pay' in a Distribution to Shareholder category, which means you will only be taking out part of which you put in, and thus, it is not taxable personally to you. A lot of small businesses do not even pay out to the owners until the business is on more solid footing.

9. Compensation of Other Officers - Same as above without the Distribution option unless the 'other' officers are partners who invested in the corporation too.

10. Salaries and Wages - This is of course, where you put in what you paid your employees, not the 1099 vendors, but the weekly, hourly workers.

11. Repairs and Maintenance - This one is self explanatory, just make sure that your accountant is depreciating your machinery correctly so that the costs of repairs doesn't escalate beyond the useful life of the asset.

12. Bad Debts - What is a bad debt? When you sell goods or services on account, be aware that some clients won't pay you. Be prepared to either confiscate the goods sold, or continue to bill for services. At what point does the debt become bad? I'd say probably past 180 days and your chances of collecting are close to zero. There are two ways of handling bad debts in your accounting. One, the Allowance for Bad Debts account. This assumes that a certain percentage of your Accounts Receivable will turn bad. (.5 - 2%) You create the account in QB and estimate that a certain percentage will never pay and you put it into this account. Two, only count those who have indicated that they will not pay or cannot pay and add them to the Bad Debts account after 180 days. Keep in mind that if a bad debt does get paid in a following year, you have to make a reverse entry to take that amount from the bad debt account and put it back into accounts receivable.

13. Rents - Office space, warehouse space, storage space all goes here.

14. State Tax - These are NOT state sales taxes, these are state taxes you pay to operate your business.

15. Local Property Tax - County, City, Parish, etc charges that you pay for to own property in that particular county, city or parish.

16. Payroll Taxes - Quickbooks puts the appropriate payroll taxes here automatically when you subscribe to the Add on service of Assisted Payroll. If you are not subscribed to QB payroll you have to enter in the correct information as to employee and employer contributions to Social Security and Medicare.

17. Other Misc. Taxes - In Northern states that seem to tax residents and businesses out of existence, things like parking taxes, etc would go here. Have you considered moving to Florida?

18. Licenses - Each occupation (legal ones, that is) requires a license to operate. These are usually paid to the county separately from the county taxes. Those fees would be in this tax line.

19. Interest Expense - Are you paying interest expenses? Again, this is self explanatory.

20. Depletion - This is the natural resources version of Depreciation, so unless your business owns forestry land, oil reserves, or farms, you won't have to deal with Depletion.

21. Advertising - Experts say that unless you are spending 10% of your revenue on advertising, you are not spending enough. However, you have to be wise about it. Any kind of marketing from yellow pages ads (least effective) to radio, television and bench ads would go here.

22. Pension/Profit Sharing - A deal you might make with potential employees is to pay less hourly and pay bonuses based on performance. This keeps a sort of 'ownership' attitude amongst the employees and the bonuses would be put here.

23. Employee Benefits - Insurance packages, etc would be put here.

24. Meals and Entertainment - When going about your daily business you have to eat. Remember that only 50% of these expenses are deductible, however, if you have a staff party and pay for a meal for all of them, it is all deductible. Oh, and the IRS isn't stupid, you can't have a staff party every day.

25. Other Deductions - If you are unsure of the category and it doesn't seem to fit anywhere above, use this one and be sure to ask your accountant later where it would go.

Hopefully this little article has been helpful. Some of this information is clearly self explanatory but some is not. The second part of this article is coming soon.

A hand. A penis. That's all that a man needs to engage in fun, friction-filled masturbation (although some lubricant of some kind is generally good to have as well.) But sometimes - especially after a guy has been masturbating for 5, 10, 30 years - he may want to try something a little different for a change. Indulging in some masturbation toys, for example, might add a little spice and a new dimension. But sometimes such toys can be a little pricey, especially if a guy needs to dispose of them so roomies or significant others don't come across them. With that in mind, here are some DIY (do-it-yourself) masturbation devices that guys can make themselves.

A warning, of course. Take care when making or using these, in order to avoid causing any possible pain or harm to oneself.

- A banana. This is one of the easiest DIY masturbation devices a guy can make. Simply take a banana - ripe or not, it doesn't matter - and remove the fruit from the peel. (One option is to simply peel the banana and remove the fruit; another is to snip off one end of the banana and squeeze the fruit out from the other end.) When the penis is erect, wrap the skin around it and masturbate. It's a little messy, but it feels very exciting.

- Bubble wrap. This doesn't take a lot of material, so bubble wrap from a recently-arrived mailing box may be more than enough. Roll it into a tube into which the penis will fit snugly but comfortably. (The bubbles should be on the inside, so that they are touching the penis.) Once the appropriate size has been determined, tape the tube so that it stays that size. Add a little lube if desired, and masturbate away.

- Paper cup and sponges. Select a cup into which the erect penis will fit comfortably. Select a couple of sponges - preferably new ones. Old, used sponges are likely to contain bacteria and particles that a man really doesn't want on his penis. Wet the new sponges and wring them out several times, until the "newness" has worn off of them. Dampen them again and use them to line the inside of the cup. Fondle the penis until erect, insert and enjoy. (Note: If intending to use the sponges again for masturbation, wash and dry out thoroughly. Do NOT return them to the kitchen sink to use for washing dishes!)

- Electric toothbrush. Handle with care, as one would all electric appliances, of course. The idea here is to utilize a small, handheld toothbrush as a small handheld vibrator. The key here is to (1) make sure the toothbrush has a range of settings and that at least one of them works for the individual using it, and (2) that the bristle portion of the brush is soft enough to provide pleasurable sensations. Assuming these conditions are met, a guy need simply work up a healthy erection, then apply the toothbrush to various parts of the penis; most men find the underside of the penis beneath the head to be especially sensitive to vibrations. It's essential that a person use a toothbrush holder that has removable brushes, so that one can be designated (and set safely aside) for masturbation uses and not mistakenly used thereafter to brush one's teeth.

A DIY masturbation device can be a world of fun, and it will work even better on a penis that's in good shape. For that reason, we urge daily application of a top-notch penis health oil (health professionals recommend Man 1 Man Oil , which is clinically proven mild and safe for skin). Look for an oil that contains vitamin B5, also known as pantothenic acid, which aids in cell metabolism and maintaining healthy tissue. Also needed in the oil is vitamin C, a key component of collagen, a tissue in the body that gives skin its tone and elasticity.