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Q.How do I record an expense incurred in December thats in January?

A.One common question asked by small business people is, How do I record expenses incurred in December that are paid for in January? Under the cash method of accounting, the expense is recorded in January when paid, but under the accrual method of accounting the expense would be recorded in December when incurred. Please remember that for both accounting and bookkepping purposes, credit card transactions are treated as cash transactions.




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