more-arw search

Q&A Forum

Cash or Accrual Tax Return?

Sharon Desser's Profile

What are the pros and cons of changing a tax return basis from Cash to Accrual for an LLC?

Answers

Anonymous
(Controller) |

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.

2298 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.