What does it mean to be profitable as a craft brewery or food crafter? Your tax return will probably tell you that profit is your cash receipts from sales less cash expenses, whether those cash flows cover months in the past or future (ie real estate taxes or insurance). Some people will tell you that this is an OK way to view your business.
But it isn't. Your tax return is meant to tell you your tax liability. And simply accounting for profit from cash inflows and cash outflows is only meant to tell you cash flow from operations.
But there's another way...Read More