Friday, July 13, 2012

Friday biz tip: 3 types of accounting, Tax-Cost-Yours


There are three kinds of accounting.. Tax accounting, cost accounting and your accounting. 


Question: Which accounting system is you running your business? 

COST ACCOUNTING vs. TAX ACCOUNTING vs YOURS


The largest difference is BETWEEN the GOALS of each.

Tax accounting is aimed at REDUCING the amount of tax owed.

Cost accounting is aimed at INCREASING the amount of PROFIT to the company.
Your Accounting..  Is a good way to fool yourself into the poor house.  
It is often based on magic numbers, sales that have not been closed and money not collected.              



For help in understanding the financial side of your business..give us a call at 412-440-6969.  
S. I.  Business Associates has been guiding small business to success since 1975 and we excell at helping our clients understand the numbers.  412-440-6969 or E-mail.  Empressofbiz@verizon.net 

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