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Discussion Starter · #1 ·
Putting together my numbers for tax time. This is probably a simple question, but here goes...

As a sole proprietorship, if I invoiced a customer in 2013 and received the payment in 2014, is that taxable for 2013 or 2014? :blink:
 

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Putting together my numbers for tax time. This is probably a simple question, but here goes...

As a sole proprietorship, if I invoiced a customer in 2013 and received the payment in 2014, is that taxable for 2013 or 2014? :blink:
Are you cash or accrual? Most people are cash so you count the income when you receive it. Accrual you count the income when it is billed
 

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Oh wait, just looked it up.. my software (Freshbooks) can switch between cash and accrual.

And it says that in the USA you can pick either cash or accrual methods, but in Canada accrual accounting is mandatory.
 

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Your accountant should be able to help you out. But Accrual.

I use Simply Accounting (I think they changed their name but the search engine will pick up Simply).

It's a older style Accounting program so might be a pain to learn, chart of accounts, accounts receivable, payable, etc. They have a user friendly interface now I think. I should have a look again at Freshbooks.
 
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