Event Description

There are generally two different ways to keep the books – cash and accrual basis. The method of accounting you choose is important because it dictates when you show income and recognize expenses. So which one is best for you and your business? That’s exactly what this course is all about! In this session, we will discuss the key differences between cash and accrual accounting. We will talk about why the cash basis is normally easier but may be misleading. We will also discuss what you typically see on most business tax returns – and why your method of accounting choice could make a big difference in your tax liability!

Objectives

– Identify when a transaction should be recorded on the accounting records under the cash method – Recognize when income is recognized and an expense must be accrued on the accounting records under the accrual method. – Identify what account should not appear on the financial records if the accrual method is being used.