COA is a list of financial accounts grouped by categories for general ledger recording. Accounts are identified by numbers and coded by type. Each account is unique and typically arranged in financial statement order
A subsidiary ledger tracks specific transaction details within a business's chart of accounts. Subledgers help segment data into manageable categories for analysis. Detailed subledgers are crucial for businesses with high sales volumes
Independent contractors and small business owners face higher taxes but more deductions. Tax code changes yearly with new deductible expenses added and removed. Standard deduction ($13,850 in 2023) or itemized deductions available
Accruals record revenues and expenses when cash hasn't changed hands. They ensure financial statements accurately reflect true financial position. Accruals improve financial statement quality by showing short-term credit details
Accrual accounting records revenue before payment and expenses when incurred. Follows matching principle requiring revenues and expenses in same period. Uses double-entry accounting method. Encouraged by IFRS and GAAP, standard for most companies
OECD published Pillar Two model rules in December 2021. Rules aim to ensure multinational groups pay minimum tax in each jurisdiction. Rules apply to groups with revenue exceeding €750 million