Extra Cash Basis Accounting Tips

Do Contractors Need “QuickBooks for Dummies”?

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A contractor’s time is valuable. Many contractors work long hours each day in the field and then come home and do estimates, pay bills and try to catch up on their bookkeeping. This obviously takes them away from spending time with their families and doing all the fun things with their children while they are […]

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Why Should Contractors Use QuickBooks for Accounting?

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QuickBooks is with out a doubt the most friendly accounting program on the market currently. Intuit, the makers of QuickBooks boast of having a 91% market share of all small to medium sized businesses in America and maybe across the entire world. Contractors that use QuickBooks for accounting enjoy the program because it’s easy to […]

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If I am a year or more behind with recording my business bookkeeping, which method of accounting should I use to get caught up?

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In about 80% of all cases you will more than likely use the cash basis method of accounting to get caught up. You would only use the accrual method in this situation if it was imperative to know the ending balance, each month, of accounts receivable and accounts payable. Most small to medium sized businesses […]

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Why Choose Cash Basis Accounting for Tax Purposes?

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There are several reasons why it’s advantageous for small business owners to use cash basis accounting for tax purposes. The two most notable reasons revolve around the recognition of payroll expenses and the benefits of credit utilization. Payroll Benefits The IRS allows all businesses on the cash basis accounting method to write off certain expenses. […]

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Cash Basis vs. Accrual Accounting: Which Method Should I Choose?

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Oftentimes, small business owners are tasked with learning all the different skills necessary to keep their business functioning properly. This could include developing skill sets in marketing, operations, and even accounting. This leaves many business owners and contractors to keep their own books or prep them for a third-party accountant. However, this responsibility begs the […]

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Stay up to date with cash basis accounting tips!

These tips are designed to teach you how to use Debits & Credits in accounting.