Should you use a Cash or Accrual Accounting System?
There are two methods of accounting - cash accounting and accrual accounting. Cash accounting is usually used by small businesses with relatively simple transactions. Accrual accounting is used by larger businesses with a more complicated accounting system.
Pick your Tax Year for your Small Business
When you open a business and file your first tax return, you must choose a tax year for your business. It's easy if you open a sole proprietorship, but a little more complex if you open a partnership or corporation.
The Accounting Equation
The accounting formula represents the relationship between the assets, liabilities and owner's equity of a small business. It represents the relationship between the balance sheet and income statement of the business firm.
Source Documents for Accounting Transactions - User Generated Content
What kind of source documents do you, as a small business owner, use in your business? Participate by filling out this easy form.
Choose the Accounting Software System that is Right for Your Business
There are many accounting software systems available for small business. When you, as a business owner, are trying to choose the appropriate system for your business, here are some features you may want to consider.
Accounting Information Systems
Business firms collect and process their financial data using accounting information systems.