This section introduces you to the process of reporting earnings and paying income tax on your business's profits. It will explain how to account for your business earnings and the kinds of income you have to report. It tells you what expenses you can deduct. It also tells you how the three most common types of business structures pay tax.
- Accounting for your earnings
Accrual or cash method?
- Fiscal period for income tax purposes
Calendar-year basis or a different annual basis?
What qualifies as business income and how to account for it.
What are business expenses and what qualifies as an operating expense.
- Inventory and cost of goods sold
You need to prepare an annual inventory. This is usually a list of goods held for sale.
- Video series: Reporting Business Income and Expenses
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