Discussion:ATM Business

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Discussion Forum Index --> Accounting Questions --> ATM Business


Mrs. Tax (talk|edits) said:

April 5, 2012
Hello,

I have a client who started an ATM business. I have to total income they made, I also know what they paid out (to a bank I assume) for the money for the machine...how do I list that as an expense on the schedule C? This maybe a silly question I guess, but this is the first time I have had an ATM business Schedule C to do. :)

Thanks, Sally

Podolin (talk|edits) said:

5 April 2012
Do they lease or own the machine?

Mrs. Tax (talk|edits) said:

April 5, 2012
They own the machines.

Podolin (talk|edits) said:

5 April 2012
It is no different than any other business. Depreciate the machines. Find out the terms of the loan, and how much of what they paid in 2011 was interest, and deduct it, along with the depreciation and other expenses.

MWPXYZ (talk|edits) said:

6 April 2012
" money for the machine...how do I list that as an expense "

I don't think the money in and out represents revenue and expense, I would think just the fees they collect would be revenue. OTOH, it would be a good idea to record all cash activity.

EmpireCPA (talk|edits) said:

6 April 2012
The money in the machine is an asset but it is either financed with borrowing from a bank or investment by the owner. Money withdrawn is due from the customer (or customers bank) and will be deposited into your client's account. If your client is then paying a bank, it is repayment of a loan. There should be no revenue or expense related to the deposit or withdrawal of cash in the machines. Income is only the $2-5 per transaction executed at the machines.

Podolin (talk|edits) said:

6 April 2012
also know what they paid out (to a bank I assume) for the money for the machine. I interpreted that to mean the money to buy the machine. If you mean money to put into the machine, then EmpireCPA's answer is correct and complete.

Mrs. Tax (talk|edits) said:

April 10, 2012
Hey,

I have a client that started an ATM Business in 2011. They recycle the money, what comes in goes out and back into the machines (they have 7 now). The other bookkeeper put the money in as professional fees and the money out as cost of sales. I am sure there is a better way to categorize it so it all doesn't look like income and expenses. It isn't exactly income to them, they only get a percentage of it. When I do their monthly reports (I just got them as clients beginning of April...I have to Jan-March reports and also their tax return, and estimated payments). They have two separate businesses and are VERY organized so getting these reports & tax return done will not be to difficult, I am just not sure how to log the money. It all goes through a bank and another company ( I have the statements from the bank.) Any advice will be very helpful.

Thanks, Sally

EmpireCPA (talk|edits) said:

10 April 2012
Money into/out of machine - debit/credit asset "Cash in ATM". The opposing entries are to the funding sources, bank accounts or lines of credit with bank, etc.

Kevinh5 (talk|edits) said:

10 April 2012
Their only income is their transaction fees. The money moving in and out of the machine is perpetually the same.

Podolin (talk|edits) said:

10 April 2012
This post linked to the prior related discussion, which has now been consolidated above.

Podolin (talk|edits) said:

10 April 2012
MrsTax, think of it this way. Would a bank or finance company show your deposits as income and your borrowings as expenses? No, only the interest and other P&L charges/credits. Same with your ATM client.

Mrs. Tax (talk|edits) said:

April 10, 2012
Thank you  :)

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