Over the summer the IRS released some accounting-for-contracts advice, providing a convenient summary of some of the most often asked questions.
For example, what is an accounting method?
Every taxpayer reports income and expenses on a tax return according to a method of accounting. An accounting method is a set of rules used to determine when and how to report income and expenses.
Basically, accounting methods are divided into two categories: the cash and accrual methods. There are several different accrual methods.
Read the Daily Reporter story HERE.