Comments on: The case against cash accounting http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/ Richard Murphy on tax and corporate accountability Tue, 06 Jan 2009 14:29:21 +0000 http://wordpress.org/?v=2.6 By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-53539 Tax Research LLP Thu, 10 May 2007 15:44:02 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-53539 Steve What are they? Richard Steve

What are they?

Richard

]]> By: steve http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-53512 steve Thu, 10 May 2007 15:00:11 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-53512 surely though, in most cases, the cashflow benefits of cash accounting outweigh any negatives? surely though, in most cases, the cashflow benefits of cash accounting outweigh any negatives?

]]> By: Tax Research UK / Why cash accounting is bad for business http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1901 Tax Research UK / Why cash accounting is bad for business Tue, 31 Oct 2006 13:52:20 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1901 [...] Emily Coltman, who suggested AccountingWEB’s campaign for cash accounting has posted a comment on my feature on this subject. Because I think it worth drawing to wider attention I am posting my response here. [...] [...] Emily Coltman, who suggested AccountingWEB’s campaign for cash accounting has posted a comment on my feature on this subject. Because I think it worth drawing to wider attention I am posting my response here. [...]

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1890 Tax Research LLP Tue, 31 Oct 2006 11:27:19 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1890 Please also see this - which is my reply to Emily http://www.taxresearch.org.uk/Blog/2006/10/31/why-cash-accounting-is-bad-for-business/ Please also see this - which is my reply to Emily

http://www.taxresearch.org.uk/Blog/2006/10/31/why-cash-accounting-is-bad-for-business/

]]> By: Emily Coltman http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1854 Emily Coltman Mon, 30 Oct 2006 16:05:18 +0000 http://www.taxresearch.org.uk/Blog/2006/10/30/the-case-against-cash-accounting/#comment-1854 Hi Richard. Ouch! - I thought of the name "a CASE for Cash", but I'm NOT a "tax accountant with no interest in business". I'm a young accountant who has seen too many small business owners struggling to understand prepayments, accruals, UITF 40... Business owners are not accountants nor yet are they bookkeepers, and they shouldn't need to understand accounting concepts. I want to make life easier for business owners. That's why I support cash accounting. - Nobody said that businesses who prepare accounts on a cash basis would not need to keep track of their debtors and creditors. Not to do so is daft for any business. Not including them in the accounts is a different matter entirely. - Cash accounting does not necessarily imply 100% capital allowances, or no tax adjustments. As I said on an Accounting Web posting, there would still be adjustments needed for e.g. entertaining and drawings. - A cash receipts and payments record has to be kept whether the client uses cash or accruals accounting. It's not an undue burden for those using cash. - I do not support cash accounting for companies, and perhaps businesses which plan to grow should not use it. But for small unincorporated businesses who just want to tick along quietly, it could save a lot of aggro. That said - I do agree with you that if UITF40 were not a requirement for small businesses, that would be an excellent start! M Hi Richard.

Ouch!

- I thought of the name “a CASE for Cash”, but I’m NOT a “tax accountant with no interest in business”. I’m a young accountant who has seen too many small business owners struggling to understand prepayments, accruals, UITF 40… Business owners are not accountants nor yet are they bookkeepers, and they shouldn’t need to understand accounting concepts. I want to make life easier for business owners. That’s why I support cash accounting.

- Nobody said that businesses who prepare accounts on a cash basis would not need to keep track of their debtors and creditors. Not to do so is daft for any business.
Not including them in the accounts is a different matter entirely.

- Cash accounting does not necessarily imply 100% capital allowances, or no tax adjustments. As I said on an Accounting Web posting, there would still be adjustments needed for e.g. entertaining and drawings.

- A cash receipts and payments record has to be kept whether the client uses cash or accruals accounting. It’s not an undue burden for those using cash.

- I do not support cash accounting for companies, and perhaps businesses which plan to grow should not use it. But for small unincorporated businesses who just want to tick along quietly, it could save a lot of aggro.

That said - I do agree with you that if UITF40 were not a requirement for small businesses, that would be an excellent start!

M

]]>