Hello, I am looking for some feedback as it relates to the accounting for crowd-funded projects. I am the only
Accounting for Crowdfunded Projects....
Answers
In my opinion (without researching GAAP):
You can do it either way, but you need to be careful how the sales brochure was worded as well as the payment process, as well as the rules of Kickstarter, if any.
If you sold it for $50 inclusive of Tax, Shipping, etc. Then you'll need to net the sales amount, add shipping and tax.
Tax can be problematic. Are you charging Sales tax just for CA or elsewhere? If so, you'll have two or more net sale prices.
1
Thanks so much for the feedback. I really appreciate it.
We are actually charging sales tax for different states. Is it a problem GAAP or otherwise to have different net sales prices (other than that it will distort some metrics)?
Filed Under:
FP&A