I'm Tax Accountant Jim Trippon with a short lesson on Tax Planning and Tax Accounting practices that are fool proof to save you cash on this year's income tax return. In case you're a business man who cannot take decisions primarily according to informed knowledge, then you might be clearly heading out of business. What a bookkeeper does is track all of the money that the business handles, both incoming and outgoing.
The importance of accounting can be discovered from the undeniable fact that accounting principles such as double entry bookkeeping are compulsorily to be then all companies to avoid any future mishaps and this is clear when you look back at larger company crisis, smaller businesses can suffer more than larger companies through accounting ledger errors while they are less more likely to hold the assets available for sale should finances go wrong. Cash and bank records should also be entered. Business does indeed make the planet go round.
Under the accrual accounting concepts there might be other types of 'matching' adjustments such as providing for deferred and accrued income. Depending about the set-up of the business procedure, the cash method takes a bit more discipline in book keeping. This is because accounting is relative to invest in and goes hand in hand with it. This way is simpler when large contracts are signed, nevertheless the payment plan may last several years.