How to record Free Apps./Discounts

Discussion in 'Pesticide & Herbicide Application' started by mrkosar, Mar 21, 2007.

  1. mrkosar

    mrkosar LawnSite Senior Member
    from Ohio
    Posts: 664

    For taxes and revenue how are you supposed to record say a free application to get them to pay for the entire year?

    I would think you record it as though they have paid the full amount correct?
     
  2. MStine315

    MStine315 LawnSite Senior Member
    Posts: 789

    For tax purposes, I believe you are taxing the amount RECIEVED, not the VALUE, correct? In that case, a percent of zero is zero in taxes owed. Correct me if I'm wrong, but that's my take. If I offer a free winterizer app. with a lawn aeration, I'm not going to tax them on the winterizer, just the aeration.
     
  3. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Posts: 1,011

    Mr. Buckner,
    I agree with Marc. If no money was exhanged, there is nothing to tax. I'm running a free lime app for new sign ups. I'll be using a fert a lime combo. So it will not cost me anything, Plus i can still charge for the fert.
    -Jay
     
  4. MStine315

    MStine315 LawnSite Senior Member
    Posts: 789

    LOL, I think he'd probably prefer Mr. Matsuzaka, but I may be wrong.
     
  5. mrkosar

    mrkosar LawnSite Senior Member
    from Ohio
    Posts: 664

    alright there darryl. let's lay off the white lady and get back to business...just kidding.

    thanks for the advice.

    sniff...sniff. i think i smell another world championship in beantown if i'm not mistaken. do you smell that mr.keith "my mustache is larger than my face" hernandez?
     
  6. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Posts: 1,011

    Maybe if the "white lady" visited more often we would win again. AAH, the good 'ol days.
    Oh yeah, Kosar have you updated to groundskeeper 6.0
    Have to say, there getting closer every time. Much better.
    -Jay
     
  7. mrkosar

    mrkosar LawnSite Senior Member
    from Ohio
    Posts: 664

    what's different about it compared to the old one?
     
  8. Shades of Green LService

    Shades of Green LService LawnSite Bronze Member
    Posts: 1,011

    Well for one, When you apply a payment, it stays up until you ready to apply your next one.Theres a lot of small improvements that make it run a lot smoother. Go to the web site. check it out. It's $30 to upgrade.
    I've upgraded, added the pre printed perf. paper and window envelopes. Makes life a little bit easier.
    -Jay
     
  9. turf hokie

    turf hokie LawnSite Silver Member
    Posts: 2,744

    I offer a discount to prepay the season. In quickbooks I set up a discount expense column. This way you can track how much discount you gave and it also comes of your bottom line I think. This is why I have an accountant.

    I would imagine if you charge $50 per app and give one away you could put it into that same category as a discount. But I would have to :hammerhead: pretty hard to be :dizzy: enough to give something away

    And the Yankees are gonna win so you guys can stop arguing about it.:weightlifter:
     
  10. ThreeWide

    ThreeWide LawnSite Bronze Member
    Posts: 1,116

    This is correct. If you setup an expense account called Discounts, every dollar that is subtracted from your normal charges would be entered into that. You might offer a percentage discount for prepay or possibly free visits for referrals. All of that can be included in the Discount account. At the end of the year, the value of this account is deducted from your income for tax purposes.
     

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