In cash basis accounting, income is recognized when it's received and expense is recognized when it's paid. The date when the sale is made or the expense is incurred is not significant in cash basis accounting method. In accrual basis accounting, income is recognized when it's earned, realized or realizable. Expense is recognized when related revenue is recognized. Terms: "revenue is earned": it means either products are delivered or services are provided "revenue is received": Revenue is received when a deposit is made or a payment is received. "revenue is realized": Revenue is realized when cash for products or services is received. "revenue is realizable": ...

What are the essential legal requirements to start a business? - Choose a type of business you want to start. Sole Proprietorship General Partnership, Limited Partnership LLC (limited liability company) C Corporation, S Corporation - Choose a business name. How can you choose a good business name? - Choose accounting period and method. The choices for accounting period are calendar year and fiscal year. Fiscal year is an accounting year that is used to calculate annual financial statements in business. Taxation laws require accounting reports generally once per every twelve months or once per every 52 or 53 weeks, but the year isn't required to be the ...

Starting an online business is not much different from starting a traditional business. - Business license and permits for Internet business Online business owners are required to obtain any necessary business license(business tax) from city, county, state or federal governments as regular business owners do. What are the legal requirements for starting a new business? - Sales tax on online sales Some sites need to collect sales tax and others don't. The rule is if an Internet retailer has a physical store, warehouse, or office in a particular state, they must collect sales tax for sales for customers from that state. - Business name ...