Thank you for your reply. In all my research I have found that there is no issue in using the cash accounting method. I am an artist who makes jewelry using raw materials like stones and metals. Why do you think I would need to switch to the accrual method?
I was just wondering, since I have already deducted my raw materials as expenses in 2020 and 2021, if I start tracking inventory now, I would only list purchases made in 2022 in Part III, even if some of my raw material from prior years was used in my income-producing products.
Thanks for any clarification!
