Accrual Method of Accounting

What’s the best accounting method route for business tax purposes?

Accounting, Accrual Method of Accounting, C Corporation, Cash Method of Accounting, Farming Businesses, Federal Income Tax, S Corporation, Small Business, Small Business Owners, Small Business Tax Tips / Douglas Freeman

Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your […]

What’s the best accounting method route for business tax purposes? Read More »

Choosing the right accounting method for tax purposes

Accrual Method of Accounting, Cash Method of Accounting, Hybrid Method of Accounting, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Tax Deduction, Tax Planning, Tax Savings, Tax Withholdings / Douglas Freeman

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of

Choosing the right accounting method for tax purposes Read More »