Income Report

[Mike or Penny Novack]

>
>I think this should fulfil my requirements.  Am I missing something?
>
>However, when somebody is following accrual accounting, don't they need to 
>know actual amounts credited by customers - sum of the splits into bank and 
>tax accounts?  Is my need so unique? :-(
>
>Thanks and regards
>Vikas Garud
>  
>
Yes, I will repeat, you will have to look at accounting principles to 
understand the difference. You are keeping your books on the "cash" 
basis so WHEN the customer pays the invoice matters to you (in terms of 
income and taxes). But were you on the accrual basis:

a) Income (and taxes) owed would depend on the date of the invoice (when 
the amounts became "receivable"). THAT is when the split you are 
referring to would have taken place.

b) Yes, you would be interested in knowing when and whether the customer 
paid. If the customer never pays, the amounts end up as a "bad debts" 
expense and and adjustment to taxes owed.

Here too, many small businesses are on the "cash" basis and almost all 
larger ones "accrual" BUT there are certain lines of business where you 
are REQUIRED to use a particular method.

Michael D Novack