How do I determine my company’s accounting method?
Edited
There are two accepted methods of accounting; cash basis and accrual basis.
Cash basis accounting reports income in the period received and expenses in the period paid.
Accrual basis accounting reports income when earned (regardless of when payment is received), and expenses when incurred (regardless of when paid).
If you are uncertain of your company's accounting basis, this is not something Middesk would be able to advise your business on, and we would recommend reaching out to your payroll provider to confirm, or a trusted tax advisor/attorney.
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