4 hours ago
First, a little "primer" on just exactly what "accrual basis accounting" represents.
The invoices everyone in HPP got for their 2024-2025 road fees - guess what?
To the "corporation" that is HPPOA, the total sum of all those invoices is REVENUE baby! Recorded on "the books" of HPPOA as a "credit" to "Revenue" and a "debit" to "Accounts Receivable." All in January 2025.
And when you pay your invoice, regardless of when you pay, be it today, tomorrow or on March 31, then and only then, is the entry booked that "credits" "Accounts Receivable" and "debits" "Cash."
Expenses work the same way. Let's say the GM gets a delivery of rock today. On "the books" of HPPOA, an expense is "debited" to "Gravel," and a "credit" is made to "Accounts Payable" on January 31.
Let's now assume that HPPOA has agreed to 60-day payment terms. So, on or about March 31, a check is cut that "debits" "Accounts Payable" and "credits" "Cash."
So, to be clear, paying your road fee bill whenever you pay it has zero bearing on anything HPPOA is or does.
Accrual-Based Accounting Explained: What It Is, Advantages & Examples | NetSuite
"Hence, HPPOA charging a $13.05 convenience fee."
A fee paid by HPPOA to the Bank that is providing the service terminal in order for the HPPOA Office Staff to process the charge on their credit card.
This type of charge from the Bank is deducted from the amount the Bank has processed in credit card payments before the money is transferred into the cash account(s) of HPPOA.
It has nothing to do with HPPOA making a profit or the office staff.
I hope this clears up any confusion or worry.
But, even if my little primer and link above doesn't convince you, and your hell bent on thinking that paying your HPPOA bill on the last day of the month is somehow hurting or in any way doing anything to HPPOA, then the really best bang for your buck would be not to pay your bill until April 29th.
I can't put my finger on where I read it and it's not worth my time to look up, but I remember reading that late fees are not assessed until 30 days late. In as much as I have explained and provided the link above that explains all of the accounting procedures, if you think you're in anyway doing something to upset HPPOA by paying your dues on the last day, why not really "stick it to them" and pay it 29 days late with no late fee charge?
That will show them who's boss!
The invoices everyone in HPP got for their 2024-2025 road fees - guess what?
To the "corporation" that is HPPOA, the total sum of all those invoices is REVENUE baby! Recorded on "the books" of HPPOA as a "credit" to "Revenue" and a "debit" to "Accounts Receivable." All in January 2025.
And when you pay your invoice, regardless of when you pay, be it today, tomorrow or on March 31, then and only then, is the entry booked that "credits" "Accounts Receivable" and "debits" "Cash."
Expenses work the same way. Let's say the GM gets a delivery of rock today. On "the books" of HPPOA, an expense is "debited" to "Gravel," and a "credit" is made to "Accounts Payable" on January 31.
Let's now assume that HPPOA has agreed to 60-day payment terms. So, on or about March 31, a check is cut that "debits" "Accounts Payable" and "credits" "Cash."
So, to be clear, paying your road fee bill whenever you pay it has zero bearing on anything HPPOA is or does.
Accrual-Based Accounting Explained: What It Is, Advantages & Examples | NetSuite
"Hence, HPPOA charging a $13.05 convenience fee."
A fee paid by HPPOA to the Bank that is providing the service terminal in order for the HPPOA Office Staff to process the charge on their credit card.
This type of charge from the Bank is deducted from the amount the Bank has processed in credit card payments before the money is transferred into the cash account(s) of HPPOA.
It has nothing to do with HPPOA making a profit or the office staff.
I hope this clears up any confusion or worry.
But, even if my little primer and link above doesn't convince you, and your hell bent on thinking that paying your HPPOA bill on the last day of the month is somehow hurting or in any way doing anything to HPPOA, then the really best bang for your buck would be not to pay your bill until April 29th.
I can't put my finger on where I read it and it's not worth my time to look up, but I remember reading that late fees are not assessed until 30 days late. In as much as I have explained and provided the link above that explains all of the accounting procedures, if you think you're in anyway doing something to upset HPPOA by paying your dues on the last day, why not really "stick it to them" and pay it 29 days late with no late fee charge?
That will show them who's boss!
"Make Orwell Fiction Again"