Even if you’re a small business, and even if you use cash accounting, it can be beneficial to use the accounting cycle. Once this initial review has been completed, and your transactions have been coded properly, you can move on to the next step in the accounting cycle. The purpose of this step is to …
Bookkeeping
LLC Accounting: Everything You Need to Know
Limited liability companies often have the owners of their LLC subject to payroll taxes. Unlike owners of sole proprietorships and partnerships, S corporation owners only pay self-employment taxes on their wages rather than their entire share of the company’s profits. All other income goes to shareholders in the form of “distributions” that are not subject …