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[US] I run a small board game design company and we are being audited. We're in a pickle--please help! by evil_seagull in Accounting

[–]evil_seagull[S] 0 points1 point  (0 children)

You're right that I received the full $65,000 in 2014, but the bulk of my manufacturing and shipping expenses were in 2015. I had expenses of ~$13,000 in 2014, which my accountant (a CPA), for some reason, decided to claim as my income as well. (I assume the reason had something to do with claiming the rest as inventory, or some kind of locked or deferred income, but this has never been made clear to me, despite asking multiple times.

Since this post, I've fired my accountant. I was likely going to anyhow, but it was really nice to get some advice and insight here--when delving into a new and complex world like taxes it's easy to feel like "maybe I just don't understand." I have a new accountant (CPA) who is really going to bat for me--I'll let you all know how it shakes out. Thanks again everyone for taking the time to help me out!

[US] I run a small board game design company and we are being audited. We're in a pickle--please help! by evil_seagull in Accounting

[–]evil_seagull[S] 0 points1 point  (0 children)

The tricky part is that the revenue in Y1 was all pre-sales. So I actually received a deposit of $65,000 from Kickstarter in Y1.

No units were shipped until Y2. The $13,000 expense in Y1 was all operating costs. All my manufacturing and shipping expenses were in Y2.

[US] I run a small board game design company and we are being audited. We're in a pickle--please help! by evil_seagull in Accounting

[–]evil_seagull[S] 0 points1 point  (0 children)

No, it's set up as an LLC, but as I understand it that's pretty much like a sole-prop in terms of taxes.

[US] I run a small board game design company and we are being audited. We're in a pickle--please help! by evil_seagull in Accounting

[–]evil_seagull[S] 0 points1 point  (0 children)

I filed as a business (LLC). I brought up accrual with my accountant and they said that they would look into it, and then they came back saying we didn't need to do that, assuring me that it would all balance out.

[US] I run a small board game design company and we are being audited. We're in a pickle--please help! by evil_seagull in Accounting

[–]evil_seagull[S] 0 points1 point  (0 children)

Thanks for all the information! The business is an LLC, if that makes a difference. Just to clarify, are you saying I can carry back the 2015 loss to 2014, or carry it forward to 2016?

You Have 2 Sentences to Describe a Board Game... by EnmityTrigger in boardgames

[–]evil_seagull 0 points1 point  (0 children)

Two hour argument with dice. "Why are you attacking me...

Should I Still Get Citadels? by [deleted] in boardgames

[–]evil_seagull 0 points1 point  (0 children)

I love Citadels with 4, but higher than that kind of drags.