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DIFFERENCES BETWEEN ACCOUNTING AND INCOME TAX SERVICES

Accounting and income tax services are both related to finance, but they serve different purposes and have distinctive characteristics: Accounting: Income Taxes: Key Differences: Additional Points: In Summary: Both play crucial roles in understanding your financial situation, but they serve distinct purposes and operate under different sets of rules. Silicon Valley Accounting Solutions is an […]

WHAT QUALIFIES AS A RECEIPT

To be accepted as proof of an expense, a “receipt” must include the following information: For an expense to be deductible on a business tax return, it must also reference the purpose or nature of the expense.  The explanation must connect the benefit received to the business activity.  Although, the IRS rule is that only deductions in […]

RECONCILE BANK ACCOUNTS

The Why and How of Reconciling Bank and Credit Card Statements A staple of monthly accounting activities for most companies (and many home money managers) are bank and credit card reconciliations. It is not uncommon, however, to hear “why bother?” Well, the truth is that “what you don’t know CAN hurt you” and, all too […]

MONTHLY CLOSE

Accounting: The Monthly Close. What Is It and Why Do It? Periodically, the business owner and their management team will want to review the company’s performance and assess its financial health. Although most accounting software packages can automatically generate a multitude of financial reports, the software cannot know that all of the required data has […]

ACCOUNTING: CHART OF ACCOUNTS

What Is A Chart of Accounts in Business Accounting? Every business accounting system (whether it be manual or automated) organizes the transactions recorded into accounts to distinguish the types of entries and their relationship to each other.  The master list of these accounts is referred to as the company’s Chart of Accounts. The naming and order of accounts […]