how you have bookkeeping for non-commercial activite"ex.dactor, Lawer ...etc?

Question

Good eveing every one, first thank you for intersting with my question, am interstin to know about bookkeeping for non-commercial activite, like dactor, independence accoutnats, lawer...etc, all that's works who rely for work not capital like commercial activite, how the amrican, canadian and the uk tax law estimat there income, or what kind of books there keep for that!? and how its classified?

Answer 1

Most professional in the keep books on a cash basis for financial and tax reporting.

Capitalzation normally comes in the form of debt financing for equipment.

Since professional service corporations have little in the finanicing needs , this capitalization remains as debt .

Answer 2

You either hire a bookkeeper or accountant, or learn about accounting and spend a lot of your time doing that rather than doctoring, lawyering or whatever profession you're in. You need to have accurate records of income and expenditures.