1. If your company is setup for "Cash Accounting"... meaning that the
majority of your business is a non-tangible product, such as Internet
Service, then it is not considered a sale UNTIL you actually recieve the
money in your hand.
2. If your company is setup for "Accural Accounting"... meaning that the
majority of your buiness is selling tangible products, such as computers,
then it is considered a sale as soon as the customer takes possession of the
Of course your company can be setup as "accural accounting" even if your in
catagory #1... however that would NOT be in the best interest of the company
since you would be paying taxes on income that has not actually gotten to
your bank account!!! but then the IRS doesn't care if you want to pay them
extra... However, the other direction would cause you to be legally "out on
So, from what I see of Josh's script, it basically is for Accural Accounting
instead of actual payments received.....
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