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Cash Acccounting

Cash Accounting

Cash AccountingThe tax authority require book keeping records to work out the tax due. The choice for small enterprise is essentially money accounting or increase accounting which has advantages and drawbacks. The date of the sales invoice and the date of purchase invoice are called the tax point.The tax point doesn’t decide the spread of that exchange over the tax period which can on occasion be different when accounts are prepared on an increases basis versus a money basis. For the purpose of money accounting the effective inclusion of the transaction in the finance records is the date the money or bank invoice or payment was made. Continue reading

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Tax Benefit Exchange