Week 6 Taxacct Reflection



Bryant and Stratton College, Buffalo *

*We aren’t endorsed by this school






Jan 9, 2024





Uploaded by DoctorWaterAlpaca37 on coursehero.com

Felice White Reflection Tax Acct 130 04/15/2023 Assume you are a small business owner and operate within your own home. You must determine which accounting method and accounting period to use. What would you choose? Explain your reasoning. As a small business owner operating within my home, the accounting method I would be using is cash accounting. I would be known for having an independent contractor to be the only person managing my business. I feel that it is easier to keep up with the cash flow instead of having a lot of paperwork businesses have when being corporate. Being the sole proprietor, when reporting on a cash basis my deductions are recognized by using receipts when filing tax returns. When filing my business income, the money that is made at the end of the year can go back into the business so I can afford to purchase new products to sell. For my business, when filing a tax return, I use the calendar-year accounting period. Being consistent with the calendar-year Dec 31- Jan 1 helped make it not so complicated to remember when I started and ended filing my tax returns.