There was a new change to reporting this past year – the Form 1099-K. Merchant service providers such as Visa, Mastercard and Pay Pal were required to send these forms to sellers starting this past year. The IRS realized wasn’t quite ready to start matching these forms with tax returns so although the Form 1099-Ks [...]
In my last Cash Flow Accounting post, I talked about the two common bases for accounting: cash and accrual. There is actually one more basis. This is the one that retail businesses need to use. Retail businesses must use the hybrid basis of accounting. With this basis of accounting, the cost of inventory is an [...]
Most small business owners start off with a bookkeeping basis system that is the same as their tax accounting basis system. In other words, since most small business owners are on the cash basis, they keep their books on the cash basis. As the business grows and business owners gain some business sophistication, they realize [...]
