California Business Portal

Taxes

How should I record my business transactions?

Business transactions are ordinarily summarized in journals and ledgers; many of them are in computer software format. A journal is where you record each business transaction. You may have to keep separate jou...

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What is an accounting method?

An accounting method is a set of rules used to determine when and how income and expenses are reported. While there are several methods of accounting, the two most common are the cash and accrual basis. You sho...

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Can you help me understand what is taxable and nontaxable income?

You will generally compute taxable income by starting with gross income, excluding nontaxable income and exemptions, and subtracting allowable deductions. The accounting method that you select will determine th...

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