Be a Rule Follower!
There are two options when starting a business. One is to have a lot of upfront capital and work until the money is gone. The better option, TWO, is to have an accountant closely watch your investment to make sure your return is adequate.
Give me a call at Rule Accounting and become part of the option TWO group!
Brett Bickham, 254-978-0001
Rule Accounting is a managerial accounting firm formed in 2017. I specialize in managerial and tax accounting for family ranches.
Rule Accounting derived their business name from all of the many rules in accountancy. Bookkeeping is the day to day process of journalizing the temporary accounts of revenue and expenses. There are six major steps in the accounting process. The bookkeeping part is step two. Accounting goes into greater detail and includes the Balance Sheet accounts of Assets, Liabilities, and Retained Earnings (Capital). Accounting rules include domestic rules, international rules, and generally accepted accounting principles (GAAP). The domestic rules, or standards, are developed by the Financial Accounting Standards Board, or FASB. The international rules are developed by the International Financial Reporting Standards, or IFRS. The international rules are similar to the USA rules for the most part. Livestock rules are different abroad but here in the USA those differences don’t affect most of us.
Continue reading “Rule Accounting”When ranchers raise their own replacement heifers, the money spent on raising those heifers cannot be expensed. Meaning, the feed that is paid for out of the ranch account is not to be deducted, as an expense, come tax time. Of course, there are many other cost related to raising heifers too. None of those cost are to be deducted as business expenses.
Continue reading “What Most Ranchers Do Not Know About Their Expense Write Offs”For 2018, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 54.5 cents. (Up 1 cent form 2017)
You need records to prepare accurate financial statements. These include income (profit and loss) statements, cash flow statements, and balance sheets. These statements can help you in dealing with your bank or creditors and help you to manage your business.
Proper financial statements require journal entries of all your assets, liabilities, revenues, and expenses. The checkbook part is easy, but the asset entries are complicated. Best to have an accountant do that.
Rule Accounting is ready and available to assist you in preparing your financial statements. Most banks will work with you to prepare the financial information they want to see. To really impress them, have your financial statements professionally prepared.
Of course, the main reason to prepare financial statements is to protect your business. Comparing your companies historical financial statements will show you important trends in your business.
Remember, accurate financial statements are for your benefit.
Brett Bickham, 3/12/19
Rule Accounting
Clifton, TX
Assets are the property, such as ma- chinery and equipment, you own and use in your business. You must keep records to verify certain information about your business assets. You need records to figure your annual depreci- ation deduction and the gain or (loss) when you sell the assets. Your records should show all the following.
Inventory is something that you sell. Prepaid supplies are used to assist your business. Raw materials are used to produce inventory. Inventory, prepaid supplies, and raw materials are all current assets. Inventory cattle are raised cattle, available for sale. Current assets are available for sale. Fixed assets are part of your business to generate income. From Schedule F (Form 1040), Profit or Loss from Farming, they refer to mama cows as livestock and other resale items. Implies that cow/calf operations buy cows to resale them. Granted, a lot of cows are culled and sold, but I would not classify them as resale cattle. Calves put on feed and sold the following year, are inventory cattle.
When you do sell mama cows, the IRS wants to know how much you paid for those cows. That amount is to be reported to the IRS on schedule F as “Cost or other basis of livestock or other items reported on line 1a”. The “other basis” is to include any feed given to replacement heifers or bulls.
Continue reading “Inventory Cattle”Just what is a derivative? Well first let’s define a function. A function is a relationship between any two dependent numbers. One number is the independent variable and the other is the dependent variable. This may be used for many applications such as supply and demand, marginal cost and fixed cost, rate of change, velocity, etc.
A derivative is the rate of change at a particular time, or the instantaneous rate of change. On a continuous curved domain line, the derivative of a particular point is the slope, rise over run, of the tangent line to that point. Average rates of change in data are based on multiply points. A rate of change at a particular point is a derivative.
Continue reading “What is a Derivative?”There are exactly 1,000 $100 bills in a bundle. According to Federal Reserve Bank Services, a bundle is comprised of 10 currency straps of 100 bills each for all bills greater than $1. A currency strap of $100 bills is worth $10,000 and a 10-strap bundle totals $100,000. 100 notes is the worldwide standard count for one strap – regardless of denomination. 10 straps always = one bundle. A “bundle” of strapped cash a/k/a a “brick” contains 1,000 bills.
Continue reading “Is Paper Currency Dead?”