Which accounting method to define monthly salary?
I have a client with an S Corporation. His CPA told him to pay himself (on payroll) very month 65% of his net income. When I wanted to run the P&L I noticed there’s a $1500 difference between accrual basis & cash basis report.
Based on which accounting method I should calculate the 65%? His accounting method is cash basis but he has some AR in his report.
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