With a company bank account setup and startup expenses accruing for the last few months, I’ve been learning accountant and bookkeeping—which is way more interesting and creative than I had realized.
Assets = Liabilities + Equity
Debits on the left, credits on the right.
Cash vs. accrual
Capitalizing a trademark—which meant starting with expense accounts for legal fees (for trademark screening and for trademark application) and USPTO filing fees… but not yet declaring them an intangible asset until the mark is fully registered. I think.
Capitalizing a domain—just did this today, realized that I didn’t have my domain expenses properly accounted for. I purchased a domain from someone else, and that domain is tied to my trademark. The domain transfer had me put money in an escrow account until the transfer was completed. Now the domain is an intangible asset on the Balance Sheet.
Amortization—… and now I have to figure out how to efficiently setup a 15-year amortization schedule for the domain I purchased, because IRS.
I’m glad I’m learning this, especially while the business is pretty darn simple. If/when I do need professional help with accounting, I’ll be much better equipped to ask the right questions and find the right person.
