As I’m getting ready to post my financial reports for April, I’m making some changes to my accounting methods. I would like to get this information out in the open in case anyone has any questions or suggestions ahead of time. This would allow me to make changes if necessary, but I think everything’s going to be okay.
Change Number One: Education Funding. When I was granted my student loan, some money was disbursed to me and the rest was sent to the school to pay for tuition and fees. I am billed for these fees at the start of each class and the money is automatically taken from my account at the school.
I’m now including the money being held in this account as funds contributing to my net worth. It is in fact my money until it is used to pay for the education expenses, since I could conceivably quit and receive the money back at any time.
Also, when I am billed for each class and the school transfers money out of my account to pay, I am transferring 90% of those fees to a Reimbursable Spending account. This is the amount I expect to be reimbursed from my company for taking the class.
Change Number Two: Google AdSense. A few months ago, I added (relatively) unobtrusive ads to this site using the Google AdSense program. Recently, Google decided to allow its members to discuss earnings as long as the information is represented accurately. Therefore, I added a Google AdSense Holding account which shows how much this site (and a few others in minimal amounts) is generating. (It’s not much.)
I should receive a check every month (as long as the income accrued is over $100, which will probably be hit or miss), which I will record as a transfer from the Google AdSense account to my checking account and finally to my Web Income savings account held at ING Direct.
Change Number Three: New Credit Card. I am in the process of switching from my CitiBank Upromise Platinum Select MasterCard to a new CitiBank Dividend Platinum Select MasterCard (which is still enrolled in the Upromise program). This will result in higher and more accessible rebates for me.
Change Number Four: ScotTrade. I have successfully moved my brokerage account from Wachovia (read: bad) to ScotTrade (read: good).
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10:05 am (reply)
Hey, you finally use accrual-based accounting now! At least for some.
1:55 pm (reply)
In a very basic way. I haven’t gone so far as to spread my auto insurance premium over the entire year, for example. I take that expense when I write the check.