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 […]
Read MoreThere 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. […]
Read MoreOftentimes, 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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