Mon, 23 July 2007
-Understanding Cash vs. Accrual Accounting
-6 Tips for Smarter Emailing
Welcome back to the MBA Working Girl Podcast-Where Business Theory and the Real World Collide! I'm your host, Laura Adams.
MBA Essential Tip:
In the U.S. most small businesses can choose whether to use the Cash or Accrual Accounting method. But if a business stocks inventory that is sold to the public, the U.S. Internal Revenue Service (IRS) requires the use of the Accrual method.
In the Accrual method, the critical date for billing your customers is upon job completion. You must deliver all goods or finish all services under contract before the revenue can be recorded in your books. And you record your expense items once all goods or services have been received or fully installed.
"To state the facts frankly is not to despair the future nor indict the past." -John F. Kennedy (1917-1963)
In this show I discuss the basics of both accounting methods in way you'll easily understand.
And I'll give you 6 good tips for sending Smarter Email that will help you stay out of trouble!
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Thanks for listening-
Do Good Work, Laura
Direct download: MBA_WGP_22_-_State_the_Facts_Frankly.mp3
Category: podcasts -- posted at: 9:09 PM