This section introduces you to the process of reporting earnings and paying income tax on your business' profits. It will explain how to account for your business earnings and the kinds of income you have to report. It tells you what expenses you can deduct. It also tells you how the three most common types of business structures pay tax.

Topics

• Accounting for your earnings
  Accrual or cash method?
• Fiscal period for income tax purposes
  Calendar-year basis or a different annual basis?
• Business income
  What qualifies as business income and how to account for it.
• Business expenses
  What are business expenses and what qualifies as an operating expense.
• Inventory and cost of goods sold
  How you must prepare an annual inventory. This is usually a list of goods held for sale.

Related link

• Sole proprietorships and partnerships

Multimedia

• Video series: Businesses video gallery