of frequency and it's not a hobby. I don't touch the cars; I pay to have whatever work needs to be done.
I'd like to begin using more business features of Q2005 Premier H&B. Currently, I'm set up on a cash basis. I suppose I'd like to remain there but I'm not sure I see how switching to the accrued method would affect what I do. The difference between the two seems to leave an no matter which I choose.
Accounts:
Presently, I have one income account for Car Income (CI) and one for Car Expenses (CE). Assume I buy a car in November '05. I record the expense in CE and all subsequent expenses related to that car as well. Assume further that the car is ready to sell in Jan '06 and has gathered a few more expenses in '06. I need to have all those expenses impact the tax account at the time of sale, not as there hit my checking accounts.
One thought is to create and asset account; Cars In Process (CIP). All expenses flow to this account then when a car is sold, CIP gets credited and Car Sales (CS) gets debited. The full revenue from the sale of the car goes to CS as a credit and the net is my profit(loss) to report. CS gets the tax link.
Close?