Types of Accounting Methods
Details about popular types of accounting methods for business owners. Discover the pros and cons of each option in this TaxBuzz Guide.
A taxpayer adopts an accounting method when he uses it to file his/her first return (a change later requires IRS consent). The method chosen must:
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Clearly reflect income, and
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Be consistent on a year-by-year basis.
The three most commonly used accounting methods are: Cash - Accrual – Hybrid