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n4bookkeepers.org.
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This is known as the accruals concept so that you state actual profit rather than 'income & expenditure' which really just records movement in bank and cash.Ususally costs such as rent & rates are prepaid whereas telephone, heating and possibly wages may need to be accrued for.So if you are finishing off your year end and have not yet paid for say Telephone calls for the last month of the year , i
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