[summer04]

I have a friend who is setting up an online business (service)

I said I would help set their accounts up. The company has already been formed as a LLC, however the website has not gone live yet and is still under construction.

There has been expenditure, mostly IT/Website costs.

Do the accounts start from the date of 'incorporation' or from the start of trading... that is when the website goes live?

I have book keeping knowledge but my skills end there:p

Thanks

Summer04

[MaggieMouse]

You should start when there is activity for the business, including incorporating expenses. Before the business is up and running, all expenses should be categorized as organizational expenses, and they will be amortized over a certain period, and the period may create temporary difference under accounting and tax considerations.