Questions answered by tax and business professionals.

Amortization generally allocates the cost of certain intangible assets over time. The applicable accounting and tax treatment depends on the asset.

Depreciation spreads the accounting cost of certain long-lived tangible assets over their useful lives. Tax depreciation may follow different rules.

The chart of accounts is the organized list of categories used to record transactions. A clear structure makes reporting and tax preparation more reliable.

Accounts payable are amounts owed to suppliers for purchases already made. A current list helps schedule payments and protect supplier relationships.

Accounts receivable are amounts customers owe for goods or services already provided. Review aging reports to identify late payments.

Cash accounting generally records income and expenses when money changes hands. Accrual accounting generally records them when earned or incurred. Tax eligibility and financial reporting rules vary.