Maintaining Compliant Financial Records

that'll make life way easier um you know and it doesn't matter if you keep track of this stuff quarterly monthly you know depending on the amount of transactions you have don't let it pile up where it's a huge ordeal then um so I would try to do that so I keep track of my records almost daily but of course this is what I do but certainly um the important part is doing it you need to get your accountant the revenue which is everything you've been paid for your business and then all of your expense information and then you just kind of run a return to date I usually I'll ask people what are you looking at the last couple months you know is it going to be similar to this pace is business basically done and you know the the more accurate we are in our projection the more we we'll come in on where your tax liability is so is it legal Jeff and I know you're not really an attorney by by fact but I have a question for you an accounting question is it legal then for us as small business owners let's say we get paid Revenue in November we get paid Revenue in December but we don't deposit that until after the first of the year is that in the year that you collected it or is that the year you deposit it uh you know a lot of te if you're now the what you're referring to is the difference between Cash basis accounting and AC cruel basis accounting most small businesses are Cash basis which means you only report things received January 1st through December 31st in your example then if it's not on your bank statement until J January of the next year that's the year it would go on now if you're holding checks for a couple months and you were to be audited they would argue the the term they use is uh constructive receipt you know that this you had this money and you were just holding on to it to delay into the next year but certainly you know if you had received a check right at the end of the year and didn't get a deposited they're not going to have a problem with that and what you mentioned do people do that of course I I hear that people do that so okay um and then as far as from the accounting side when it comes to me you know if they just give me their numbers for the year I would have no idea that they held on to Jacks okay but you could get yourself in trouble under that you know it's you're you're kind of manipulating the the tax here then okay that's good to know so but it's they they'll look they they won't look at it quite so much if it's you deposited on the…