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Re: Year End Accounting Question

Mybizfiler — Thu, 28 Aug 2008 06:05:46 GMT

Hi Martin,

ICS, Inc is abbreviation of IBSN Corporate Services, Inc. and subsidiary of IBSN, Inc. We are QB certified proadvisor in the state of Iowa. You can visit us at www.mybizfiler.com for details.

Best Regards,

MyBizfiler

Re: Year End Accounting Question

00ZULU00 — Wed, 27 Aug 2008 13:57:37 GMT

Mybizfiler,

What is the affiliation between ICS, Inc. and IBSN Corporate Services? Where are these companies incorporated? You are using the Certified QuickBooks ProAdvisor logo. Where are you certified?

Regards,

Martin Bradley

Re: Year End Accounting Question

Mybizfiler — Wed, 27 Aug 2008 00:38:11 GMT

Hi

You should first decide which accounting method you are using whether Accrual or Cash method.

If you are using Accrual Method of Accounting, you can recognize the income and expenses in the period they occur. If you have delivered the job in December, you can adjust the amount in the last year (2007) financial statements.

But, if you are using cash method you need to record the income and expenses actually incurred. As you would be receiving the payment in Jan, you have to record the payment in Jan 2008.

You can successfully manage a business with our decent accounting system. Success requires the ability to accurately measure profits or losses and the ability to reasonably estimate your financial condition. You can take help of ICS as they provide end to end Bookkeeping and Accounting Services which includes:

Ø Invoice and Statement
Ø Accounts Payable
Ø Accounts Receivables
Ø Bank Reconciliations
Ø Financial Report (Monthly, Quarterly, Annually- as required)
Ø QuickBooks Support (Training/ Installation)

ICS Accounting Team is a group of professionals who are QuickBooks ProAdvisor and Certified Users. ICS, Inc (http://www.mybizfiler.com/) offers a wide range of services typically offered by a Big 5 accounting firm and a CPA firm in the U.S. ICS offers Incorporation, Book Keeping, Payroll Services, HR & Business Consulting etc. Contact ICS today at 203 437 4083, e-mail - sales@mybizfiler.com, or by accessing 24/7 chat page on http://www.mybizfiler.com/

Best Regards,

MyBizfiler

Re: Year End Accounting Question

Bridge — Tue, 03 Jun 2008 20:26:51 GMT

Tax returns can be prepared on a cash or accrual basis. Generally, cash is better if you are allowed (under $5 million in sales) but accrual can work to your advantage in certain situations.

Re: Year End Accounting Question

nytaxguy — Mon, 28 Apr 2008 18:38:49 GMT

As a small business you probably want to use cash basis accounting which means you recognize income when you receive it and you rcognize expenses when you pay for them. There are a few exceptions. Cash basis is also easier to keep track of fromthe bookkeeping perspective. Easier usually also means cheaper. The transcation you mention if you don't receive it until 2008 and you elect cash basis method would be a 2008 item. If 2008 will not be your first tax return for the business you have (or should have) already elected an accounting method. You should stay consistent with what you elect. I am a CPA in upstate NY and would be willing to help out with any tax/bookkeeping needs you may have for a reasonable price.

Re: Year End Accounting Question

AFBBIZ — Mon, 14 Apr 2008 02:27:42 GMT

The transaction to which you refer depends on which basis of accounting you are on. If you are a Sole Proprietor, you will probably be on a Cash Basis of accounting. In this event, you record the sale when you receive the payment for your services. If you are a corporation, you would normally be on an Accrual Basis of accounting. The IRS permits small corporations (under $5 million in yearly revenues) to be on a Cash Basis of accounting. But I normally advise corporations from the outset to file on an Accrual Basis. You can only change your basis of accounting once. On an Accrual Basis of accounting, when you invoice the customer is when you recognize the revenue. In your case, that would be in the year 2007.

Hope this helps

AFBBIZ

Re: Year End Accounting Question

savyfinance — Sat, 22 Mar 2008 14:42:15 GMT

The cash basis vs. accrual basis accounting only really matters in terms of the presentation of your financial statements for "book" reporting. The taxing authorities always recognize revenue when the cash or property is received or substantially received by the business.
So in summary for tax purposes, you will recognize your revenue when the payment has been received by the client.

Re: Year End Accounting Question

LUCKIEST — Sat, 05 Jan 2008 17:54:23 GMT

Buffalo, How long have you been in business?? It is good to get into the habit of doing things according to correct accounting procedures There are two methods of accounting. One is Cash, the other Accrual.
In the Cash method, Income and Expenses happen when the Cash is received and the Expense is paid.
The Accrual method. Income is recorded the day the invoice is prepared. It then becomes a Receivable
until paid. Expenses are recorded in the month they happen and become a payable until paid.
You can choose between Cash and Accrual the in first year of operations. Choose wisely.
LUCKIEST

Re: Year End Accounting Question

Lighthouse24 — Sat, 05 Jan 2008 17:52:28 GMT

ByTheBooks provides a great explanation (from which you can determine the right answer for you).

Re: Year End Accounting Question

Bythebooks — Sat, 05 Jan 2008 17:26:20 GMT

The first question to answer is if you're using cash basis or accrual basis accounting for your taxes; the IRS doesn't like a business bouncing back and forth although technically you can change now and again.

In cash basis, you don't recognize income until it's received and don't recognize expenses until the bills are paid; in accrual, you recognize income as you send out invoices and recognize bills as they are received and no, you're not to mix the two.

If you're on cash basis, you don't recognize the payment of the invoice unitl the monies are received in 2008. If you're on accrual, you recognize the income based on the invoice date.