Tax Tip #6 My Tax Man Gave to Me…

December-Tax-Tips-6

#6 Cash Vs Accrual

Consider using the cash method of accounting if you meet the qualifications. Under the cash method, you generally report income to the IRS in the year you receive payment from customers. Under the accrual method, your report income when a sale is made to a customer regardless of when the bill is paid. Most business owners prefer the simpler cash method, however the accrual has its economic presentation and tax benefits.

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