The choice of accounting date affects the delay between earning profits and paying tax on those profits. When profits are static this delay is not an issue, but when profits are rising this provides a useful cash flow benefit. However, when profits are falling this can make tax payment difficult if business needs have eroded cash that might have been set aside to pay tax. (more…)
Posts Tagged ‘partnerships’
Choice of accounting date – sole traders and partnerships
Wednesday, January 27th, 2010
