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  #1  
Old 12-23-2004, 09:52 AM
Radar Radar is offline
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Question Changing the chart of accounts

Peachtree Accountin '03 chart of accounts problem.

I purchased PT'03 to manage some rental properties I own. I started small, so how I set the accounts up didn't create much of a problem. Now that I have several more properties I have run into a large problem.

For every property I need to have several accounts:
Asset (house)
Land
Improvements to Asset
Accumulated depreciation to Asset
Accumulated depreciation to Improvemts to Asset
Account Payable for Asset (Loan to purchase property)
Income specific to property (Rent)
Expenses specific to property (work I do to it)
Expenses specific to property (work I hire done)

Now I have set up all these accounts but numbered them poorly so I cannot mask them and get an income statement let's say.

A case in point would be for just one property I have the following account numbers:
13000 Asset
14000 Asset - Land
15000 Improvements
17000 Accumulated depreciation to Asset (reference #13000)
18000 Accumulated depreciation to improvemnts (ref # 15000)

Other accounts all ending in "0" for income etc. were used. The problem is I can't mask for just this property as I get every account that would end in "0"

I would like to change the account numbers to a beginning 3 digit one use a letter to designate the town the property is in, use more numbers to indicate the address, ending with letters. i.e.:
1010 North Forest, Chanute, KS would become an assest # Like:
130C1010NF
Then other accounts would follow
140C1010NF
150C1010NF
170C1010NF

The questions I have are, should I continue to use the business I have set up and just add those accounts to it? I have been operating the business for two whole years now with these accounts. I could then transfer the account balances after the first of the year and mark the accounts as inactive until two more years have passed and I can delete them. (Is that possible by the way?)

Or would it just be simpler to create a new company with new accounts and enter beginning balaces? I would have to reconcile some accounts that are in transition, say checking where the checks haven't cleared.

Keep in mind, I am having to do transactions everyday, expenses, rent, etc.

Final question, I have been told there are people that are PT experts that can do all of this for me. Can someone point me in the direction of a few?

Thanks
Radar
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  #2  
Old 12-23-2004, 12:13 PM
M GO BLUE M GO BLUE is offline
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Sure there are plenty of experts. Two things to consider, some of my customers upgraded to 2005 because you can change the chart of accounts id in 2005. I don't know where you are located but at this forum they provide support all over. Call 800-999-9209
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  #3  
Old 12-23-2004, 06:17 PM
Radar Radar is offline
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Thanks for the number, but I'd like to do it myself if possible. I'd like to know what is required first, so that I may decide if I can do it.

Also, because of tax requirements I still have a year or so to completely write off the original purchase of the software. When I originally purchased the software, that was one of the complaints I filed.

You can create another account with exactly the same balance, but with a different name and number. You just can't point the original transaction to the new account. That is why I inquired if it would be easier to simply create a new company and a whole new set of accounts rather than to keep the original company and add the new accounts.

I am not sure if in creating the new accounts in the old company if that will mess up the income, expenses, assets and so on. You could actually end up doubling your income if not careful.

If someone has had this problem and solved it, please let me know.

Radar
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Old 12-24-2004, 12:42 AM
M GO BLUE M GO BLUE is offline
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You should check with an accountant, but I don't see any reason you could not expense this purchase directly. Changing the account IDs makes a lot more sense than what you are talking about. Primarily because you can renumber accounts to put them in order if you want. However, if you want to create a new account then transfer the balance to that account I would suggest making the old account inactive. You can hide inactive accounts using the options, general feature.
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  #5  
Old 12-24-2004, 07:37 AM
Radar Radar is offline
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The IRS rules state that any software costing more than $100 and for general use must be amortized over 3 years.

I acutally got in an argument with my accountant over this. The software they use for tax preparation has to be updated every year, so they can write it off immediately even though it costs them $500 to $1000 a year.

However, that said, there isn't any reason I can't write off two programs at the same time is there?

The version I have now is PT Accounting. Does that version for '05 allow the account ID's to be changed the way you suggest?



Another however though, my accountant wants me to switch to Quickbooks. Believe it or not, that is what he uses for the small business accounts such as mine.

I think if I went to him about this, he'd tell me to buy Quickbooks instead. He'd rather I bring my books in on a disk.
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Old 12-24-2004, 08:02 AM
M GO BLUE M GO BLUE is offline
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Yes 2005 allows you to change IDs. I can't believe your accountant is correct about this. I have customers that update their software evry year. You may want to check with another accountant

I have run into other accountants that use quickbooks. Quickbooks gives them additional incentives when they resell their software. Personally, I think it is something that cpas should examine ethically before they enter into resller agreements.
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  #7  
Old 12-24-2004, 08:16 AM
Radar Radar is offline
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Thanks for responding.

I will check again with my accountant. Actually it was a previous one that I got in the argument with.

The new accountant doesn't resell Quickbooks. He only suggested I go purchase it someplace.

When you change the account ID's in PT'05, it doesn't create a new account does it?

I can change the ID's in PT'03, the one I have, it just creates another account with all the balances and doesn't elimiate the old account.

All of the past entries still point to the old account. You would have to go back and re-enter all the transactions and point them to the new account to actually get rid of the old account. Believe this or not, early on I tried this. I ended up deleting the business and starting all over. Once I even re-entered all the transactions and pointed them to the new account.

Also, would it allow for such a radical change in ID's? I would be going for a 6 digit numeric one to a 12 digit alphanumeric one.

That would be neat if it did. I think I got a mailer from PT on '05. I better see if I can find it.

Thank you so much for your help.

Radar
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  #8  
Old 12-24-2004, 10:15 AM
M GO BLUE M GO BLUE is offline
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I have been reselling the software since version 7. In that version p'tree introduced the vendor, customer, & item id change. Yes, it does actually change the id. Just as it has worked for those other databases since 7, you click on the skeleton key and p'tree allows you to put in a new ID to replace the old ID. And updates all the references to the old ID to the new ID.
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  #9  
Old 12-26-2004, 04:53 PM
kansasdude kansasdude is offline
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Quote:
Originally posted by Radar
The IRS rules state that any software costing more than $100 and for general use must be amortized over 3 years.

I acutally got in an argument with my accountant over this. The software they use for tax preparation has to be updated every year, so they can write it off immediately even though it costs them $500 to $1000 a year.

However, that said, there isn't any reason I can't write off two programs at the same time is there?

I just checked the IRS website and found this:
Quote:


August 3, 2004
JS-1831

Treasury And IRS Issue Depreciation Regulations

Today the Treasury Department and Internal Revenue Service issued guidance relating to the election to deduct the cost of certain tangible property and computer software. The regulations reflect changes to the law made by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
And further this:
Quote:

Inclusion of off-the-shelf computer software as eligible section 179 property. Off-the-shelf computer software placed in service in 2003 qualifies for the section 179 deduction. See Off-the-shelf computer software in the discussion on eligible property under What Property Qualifies? in chapter 2.
So if I read it right, there should be no problem completely writing off the purchase price of the new software.

As always, YMMV.

--Dale
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  #10  
Old 12-26-2004, 06:10 PM
Radar Radar is offline
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That is interesting. However, my understanding of what can be written off with software is the same as tools. If it costs more than $100 you have to deduct it over several years.

There is certain acceptions to this though. In the case of certain tools that only last one season, you can write it off in one year.

As I said, my first accountant dug out the IRS rules, and read that section to me. They may have changed, but I will check with my accountant on Monday for their input. I have to go with their direction. And as I said previously in this thread, they want me to use QuickBooks.

In any case, I can't see why I couldn't be writing both off at the same time.

With PT '05 being able to change the account ID's and have all the transactions follow the new number, I have PT '05 in my sights. With QB I'd have to recreate the who company again.

Radar
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  #11  
Old 12-26-2004, 06:56 PM
Lorin Browning Lorin Browning is offline
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Radar,

Please check out the following concerning Section 179 of the Internal Revenue Service Code. You will find that it doesn't agree with your understanding.

http://www.irs.gov/publications/p946/ch02.html

Lorin
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  #12  
Old 12-27-2004, 08:34 AM
Radar Radar is offline
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Hey, I have to go with what the accountant tells me. That is why I hire accountants. If I know more than they do, then I should do the work myself. I hire them for their knowledge and advise.

My understanding is that there is a special section covering software, at least that is what was shown to me in the IRS publication. It specifically addressed software and how to handle expensing it.

I will go to my accountant and ask, but I can't just tell them to do it my way. They will tell me to take a hike, and there aren't enough good accountants here for me to find another one.

Radar
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  #13  
Old 12-27-2004, 03:52 PM
Radar Radar is offline
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WOW! Long thread. LOL

I checked with my new accountant, and he is going to review what my previous accountant did, but he said to go and expense the new software as office supplies.

The new accountant doesn't seem to care about costs till they are above $250. Go figure.

I logged on and purchased PT '05 as an update.

Thanks to everyone who helped.

UR the best.

Radar
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