In addition, you should track daily cash receipts and credit sales, expenses and inven- tory received, and employee expenses including pay and deductions. Using the cash method, income is reported the same year it is received, and ex- penses deducted the same year they are paid. With accrual accounting, income is reported the same year it is earned, even if it hasn't been received. In most cases, the method you choose for accounting will also be used for tax pur- poses. Due to its simplicity, cash basis account- ing is generally used by sole proprietorships and partnerships unless inventory is involved, in which case the IRS mandates use of the accrual method.
Most corporations use the accrual method.
Once you have done so, a number of options exist to ensure that your accounting gets done accurately. An accounting system book, available at sta- tionery stores, in which everything is set up by ledgers. All you have to do is enter the numbers. Bookkeeping services, which provide a wide range of services to help with accounting needs. A part-time bookkeeper who can maintain the company's journals and ledgers by recording all financial transactions.