What are the pros and cons of changing a
Cash or Accrual Tax Return?
Answers
Revenue timing for a growing company. For years when we were experiencing rapid growth we were taxed on less income than what our financials reported since the income always was going up but we often didn't receive payment until after January 1st. We had a favorable book-to-tax adjustment. However, if you are shrinking, the reverse can happen.
Filed Under:
Accounting