Sales reporting & cash vs. Accrual

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#1
juro  
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Location:
USA
My client runs a cash basis income stmt in QBO, and sees a net loss for year 2021.
But an accrual basis income stmt shows a net profit off $900k for year 2021.

He knows our tax return will report cash basis, so he refused to pay any estimated tax, as he sees the net loss.

But this is contractor with several big jobs in progress. So we do a Work In Progress worksheet, which will adjust expense, and i still need to do it.
 

#2
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6043
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22-Apr-2014 3:06pm
Location:
WA State
Do you have a question?
Sounds like an interesting conversation to have with your client.
~Captcook
 

#3
juro  
Posts:
918
Joined:
18-Oct-2015 9:11am
Location:
USA
Do i base the tax return on the cash basis income stmt?

Wish I could move the receivables as of year end to year 2022, so that cash and accrual sales are the same for year 2021.
 


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