IRS attacks cash method of accounting
Taxpayers selling merchandise are required to employ the accrual method for purchases and sales but are allowed to use the cash method for all other items of income and expense. On the other hand, taxpayers involved in a trade or business of supplying a service are generally permitted to utilize the cash method for all income and expense items. For taxpayers offering a combination of both services and merchandise, the IRS has effectively justified that materials perceived by taxpayers as 'supplies' were really merchandise. It has also affirmed that the existence of even the littlest quantity of merchandise in a trade or business automatically calls for an accrual method for all the revenue of that trade or business. The taxpayers who need to be aware of these are contractors, health or dental care providers, auto body shops, mobile food vendors and photographers.
Publication Name: Taxation for Accountants
The art of conversation in liquidity management
Strategies related to the designing of efficient liquidity management solution, for the management of cash flows in any organization are discussed along with the challenges to implement the designed solution.
Publication Name: Global Finance
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