ACCOUNTING.
There are two main accounting systems
you might use for you A&R business; CASH
METHOD and the ACCRUAL METHOD.
You and your accountant will need to decide on one or the other, based on a
variety of factors.
The
Cash method
This is the easiest way most people keep
track of their personal finances or money. Simply put, you receive in, income
and money you spend out, on expenses. This is the easiest to understand and
usually the easiest to use.
The
Accrual Method
The more complex but there is tax
advantages. The accrual method simply says that just because you have some
money, it doesn’t mean that you did any work for it yet. Also, just because you
paid an invoice doesn't mean you received the goods yet.
There are two methods that you can use
to maintain your books. The Shoe Box
Method or the PC Accounting Method.
Shoe
Box Method
Get a shoe box throw everything
pertaining to business in it and let and account figure out what each piece of
paper is accounted for.
PC
Accounting Method
Use Peachtree, Quickbooks or any
accounting program to track your expenses.
With you use either method, use an
accountant at year end for your books.
Kamal
D. Jabbar
CHIEF EXECUTIVE OFFICER
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