Capital or Revenue?
I am unsure if there is an enduring benefit or useful economic life over 2 year, due to the frequency that such items can be chipped and/or broken. Thanks for your help!  Hi, Sometimes bookkeeping / accounting work requires the use of judgement based on the unique circumstances of the transaction and / or the business ... so I can't answer your question. However, if you go to Bookkeeping for a Small Restaurant, you will find a link to assist you in making your own judgement based on your unique circumstances. Looking at your question makes me think you do not have an understanding of the income statement and it's various components. I do recommend you review my article on Income Statement - You Want to Understand Profitability. Pay particular attention to the definition of revenue and the definition of expense. It is important, if you are going to do bookkeeping, that you understand the basic accounting equation Assets - Liabilities = Equity where Equity = Owner' s Capital + Net Income (Loss). Net Income (loss) = Income - Expense. If you are still unsure after reading the post, you have three options as I see it: 1. Call CRA and ask for their assistance. 2. Speak with your accountant. S/he is familiar with your business and should be able to assist you with this decision. 3. Consider hiring an experienced professional bookkeeper to manage your books. P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.
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From the Mail Bag
Visitor Comments
Thanks for the information. It is nice to see there is an online site where I can go get answers to my bookkeeping questions. It was really a stroke of luck I came across this site. I googled my bookkeeping question to see if I could get an answer, a shot in the dark, and bookkeeping-essentials was one of the results listed. I looked over some other sites but none were as flexible as this site. I got a quick response and I will be using this site in the future. Thanks again.
Bayside, NY, United States
I love your site...its very homey!!! It's like reading/talking to a friend!! Thanks!!
Kim, Jackson, MS United States
Your website is positively BRILLIANT! I don't care at all for the numbers side of my business, but you've made it interesting, fun, comfortable--downright enjoyable! Bite-sized WELL WRITTEN bits walking me through fundamentals, encouraging me, explaining.(Note: "well written" covers everything from "interesting" to "intelligent." The reader doesn't stumble over elementary grammar errors, lots of typos, etc.) I've only just discovered this lovely gold mine!
Cherie, U.S.
I have just come across your site and it's great...thank you so much for the time it must take you to compile the data and information. I have no accountancy or book keeping knowledge and am currently trying to learn QuickBooks via YouTube. (lol) There must be an easier way as I don't have the time or finances, what with starting a new business, to attend a course at college or similar.
Debbie, Vancouver, BC Canada
As a novice at the bookkeeping game, this site has become my go to site for research. Thank you for the great resource. I do my data entry one or twice a year (very low volume) and I find I need retraining on Quickbooks for things like depreciation/CCA.
Den, St. Albert, AB Canada
A More Than FANTASTIC site! So often I've thought about putting something together like your site, but didn't have the time. Googling information about Supplies or Tools over under $500.00 was the most useful Google search I've ever done because of discovering your site. Way to go and THANKS VERY MUCH. PS.... Also loved it that you put the Tax chart for GST HST back to 1997; I spent hours trying to get this information from the CRA website. I've not had time to look at your whole site, but I will be refering to it often I'm sure and will mention anything I think is missing, should I not discover information as I might be looking for it. Thanks, Again
Leona, Sicamous, BC Canada
Thank you for your comprehensive reply to my question. I really appreciate the time you took to explain it to me.
Connie, Canada
This is an absolutely awesome site! I am not lying. I went to Chapters to try to find something just like this and they did not have what I was looking for - which your site does ... which is good definitions and explanations. I am going to book mark this page if that's okay. ... Great job and thank you. I will definitely use this resource.
PK Lethbridge, Alberta
My biggest problem in doing my books is keeping debits & credits straight in liability and equity accounts. I really liked the cheat sheet. (I think that will help me keep the debits and credits straight.)
Lisa, Williston, USA
Lake you're awesome in every way. I have had some insight about how to properly classify some accounts.
Karim, Calgary, Alberta
Thank you so much for this website. I am interviewing for my first bookkeeping position in over 10 years--and my first in Canada. I have AAS degrees in Accounting and Business Admin from the US but have never worked in "my field" since immigrating in 2000. Your website makes me feel more confident I can actually do the job I am interviewing for. So far, I have been refreshing my knowledge and preparing for a job interview. I've bookmarked the site for WHEN I get the job!
Robin, Toronto, ON
I love your website. Just love it.
Carolann
CPB Bookkeeping, Inc.
"The Organizer"
Lake Worth, FL
I posted a question on Accumulated Surplus and you asked me to comment on your comments. I really appreciated reading what you posted and it did help. Especially the part of talking to the accountant. That really makes sense. I find more and more that I interact with the accountants to keep on learning. Love Love Love your website. Just discovered it about 3 weeks ago and have been on it lots since then.
Jan
Red Deer, Alberta
Wow. I'm so thankful to have stumbled across your site, with the assistance of Google. :) I love your style of writing, your approach, and your message. Thank you for your time and efforts. In a nutshell, your light humor and simple approach is refreshing and uplifting.
Kathy, Hillsdale, United States
Your site is great by the way. I just came across it.
Trish, Canada
Thanks for responding so quickly ... I really appreciate all the forum help ... I do Love the forum and have looked through other questions on it and feel it will greatly help in the future. Your site is fantastic and I will recommend it to anyone asking about bookkeeping help.
Cindy, Calgary, Canada
It (your site) is very helpful and thank you for your tips and advice. I am so glad I found your site.
Lee, Calgary, Alberta
Thank you so much for your hard work on your site ... I find I learn quicker and easier with you than I did with courses. Your site has helped my knowledge, learning new things and with the explanation of terms/items. Keep up the good "BookWORK"!
Naomi, Balance Your Books, Squamish, B.C.
This website has been very helpful. It's been too many years since school and I'm a bit rusty.
Sue, Medicine Hat, Alberta
I just found this site tonight. It's going to help me a lot as I learn how to use my Quickbooks more fully (I've only used it for payroll). Don't ask me how I've managed to keep the books this long -5 years- without knowing much more than how to balance a checkbook. I'm getting some help from a professional now, but your site will keep my pro costs down. Thank you. I will definitely donate once I begin to use it with my QuickBooks. It's [your site] easier to understand than Help in QuickBooks. QuickBooks assumes I know bookkeeping concepts. It [your site] appears to be very thorough, though I've only scratched the surface of what I can learn. I took an online bookkeeping class a couple of years ago, but this site has direct application to quickbooks and it's a searchable site!
Ruth, Dos Palos, CA USA
Thank you for providing valuable information regarding home business taxes on this website.
U.C., Toronto, Canada
I started my own bookkeeping business two years ago and enjoy your site. I literally grab my cup of coffee and look around for hours. :D It's a wonderful site with loads of information and I'm all about learning from my peers who might have the answers to some of the questions I may have. Keep up the good work. :)
Tania, TaniasBookkeeping.org
Taking the worry away
Belledune, New Brunswick
BTW, did you say Bookkeeping? Cuz I fell asleep... just kidding!
Dr. Julia
www.advice-with-dr-julia.com
(I love her humour!)
Absolutely a great site! I have often dreamed of having a similar site but figured I might have to wait until I retire to get the time. I have bookmarked this site and will return again.
C.H.
Alwyn Enterprises
Scarborough , Ontario
You have a wonderful website. Thank you so much for letting me know you have one now. [It] is really well done and very, very informative. Also really charming.
R.P.
Reliable Recordkeeping
Toronto, Ontario
I'm enjoying reading your blog! Thought I'd drop you a quick note of encouragement.
Loralee, Red2Black.ca
QuickBooks "one
on one" coaching
Edmonton, Alberta
This is a marvelous site and one that I would like to use as the basis for training bookkeepers. I am a CPA here in the states and am in the process of building a what will hopefully become a substantial bookkeeping business (not a dark wood & gold lettered CPA firm). I want to serve the small business owner with the day to day service they need. You have obviously put in an enormous amount of time and effort here (there is no doubt there) and provide a wealth of fantastic information.
R. Keith Pierce, CPA, P.A.
I'll Sweat The Small Stuff For You - JaxTaxPro.com
Jacksonville, Florida