In honor of tax season, I am unlocking a lesson in the How To Calculate the True Cost of Your Wine so that everyone can hear this information.
This lesson explains the difference between Book Cost and Tax Cost and how the recent tax changes have affected this issue.
The critical points are:
- You must use True cost/Accrual in your QuickBooks file so that you have accurate numbers to manage the business.
- The tax preparer can convert from True cost/Accrual to Tax cost/Cash basis in their workpapers (but you cannot convert in the other direction)
For the non-accountants, in this context these terms mean the same thing:
Book cost = True cost = Accrual
Tax cost = Cash basis
We have an on-demand lesson for the tax preparers on how to convert from Accrual cost to Cash basis costing GO HERE .
We also offer live seminars with CPE on this very topic, led by Tyler Willis, CPA . For the schedule GO HERE.