Business Start-ups

Can I Use The Cash Method Of Accounting In My Liquor Business ?

Cash accounting is never mandated by the IRS. In other words, there is no tax-related scenario that forces you to adopt cash accounting Accrual accounting is the system you must use if: 1.You have more than $10 million in annual gross receipts. 2.Your gross annual receipts are less than $10 million but over $1 million and your primary business activity can be classified as wholesale, retail, publishing, sound recording or mining. 3.You are a partnership or tax shelter. 4.You are a farming corporation that meets certain IRS rules listed in Publication 225.

Note If you need professional help with "Business Start-ups" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.