What Accounting Basis means for your business

Summary :

Deciding on which basis of accounting to use for your business will determine how you record your transactions in any given period. Of the several methods, whichever is chosen, the business owner must be consistent in its use thereof for tax reporting and bookkeeping purposes. In order to change, they must file a request with the IRS. The most common bases of accounting are the accrual basis, the cash basis, and the income tax basis.

The accrual basis of accounting records transactions in the same period of which the related transaction occurs, regardless of whether cash is received or not. For instance, if you purchase equipment in 2009, but don’t pay for it until 2010, under the accrual method you would still include the purchase on your books for 2009. The purpose here is to match the income and expenses in the same period. The IRS has clearly defined tests that outline these events. For instance, income is considered earned on the earliest date of these occurrences:

· When you receive payment.

· When the income amount is due to you.

· When you earn the income.

· When title has passed.

And expenses become deductible when:

· The all-events test has been met. The test is met when:

o All events have occurred that fix the fact of liability, and

o The liability can be determined with reasonable accuracy.

· Economic performance has occurred.

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Develop Life Entrepreneurship, 180 students Ikut Investor Day

Not difficult to find capital from investors, provided that the business is managed and the benefits and not have a competitor. This is evidenced Group "Goodies" (Good for Kiddies), consisting of 10 students semester 2 majors International Business Management (IBM) Ciputra University, chose as the event organizer (EO) for children.

According to Jennifer Smith at the Project Manager Goodies suarasurabaya.net, Friday (06/03), on the sidelines of the University of Ciputra Investor Day, 9 together with friends is deliberately choosing a business on the field with the EO EO specialist for children. The reason, for this EO is likely to hold back the years as well as exhibitions and seminars.

"But that EO specifically the use of children, there has not been in Surabaya. We choose a golf training and preparing a snack for children of preschool and elementary school age. This potential market is big enough and the fact investors are interested in our business. We already have the capital up to Rp 16 million from the second target of our Rp 20 million, "he said.

Goodies, said Jennifer, have also set up the "Celsius" (Cooking & Charity Delicius Easter) in the Passover, 11 April 2008, at the PTC. This activity is done with the concept that has been prepared before, so that the children involved do not simply know how to make cake but motivated how to share love with each other. Target children involved in this activity for about 300 children.

Generally, the EO program on-demand. However, the Goodies, Jennifer said, vice versa. Thus the concept of the ingredients including the activities of the EO and offered to new clients.

Early establishment of business EO, plus Jennifer, own dimodali where each member urunan Rp 100 ribu. "From 5 Easter activities including upcoming events, our business is 100% capital back. This business and develop our garap although later finished college, considering we have truly entered the competition business EO, "accuse him.

Meanwhile, INGE Gunawan SE, Msi IBM University Lecturer in Ciputra separately found that activities that have a value 2 SKS involve 180 students semeter 2, and-10 group. There are 18 business garapan in the Investor Day, started Food and Beverage, entertainment service businesses, printing and sablon, souvenirs, T-shirt making.

The number of investors who are invited to reach 900 people, where every child should be able to bring at least 5 investors. "So 1 must have 50 groups of investors who can provide capital for their business. Real business that they did previously through the selection process, must be unique from either the product or how to sell it. Is entirely visible in the Business Plan that they make, "said INGE.

INGE not add enough to find and use the capital from investors, in the upcoming May, each group must be responsible in the capital before the investors. "They deliver it in the General Meeting of Shareholders. Investor Day is aimed at pumping more life and creativity Entrepreneurship students. Because each person has certain, "his him.. Read More......