Whether the company you did work for is cash or accrual, they issue 1099's for payments made that year, not according to the accounting method they use.
Regardless, any option you choose is fine.
The steps listed above will work, but what I do not like about those steps is the fact that the adjustment will be on your personal income, not the business income where it should be. That could change the QBI and Self-Employment tax calculation. Also, since we established that is a 1099-NEC, the adjustment on Schedule 1 won't have a match, we usually use that to adjust a 1099-MISC where the original 1099-MISC is also listed on the same line.
Including a statement is OK, but you would need to paper file the return as there is no way to include a statement using TurboTax.
Again, I personally would opt for reporting the 1099 and expensing what wasn't received until 2025. That way the correct amount of BUSINESS income is reported on your Schedule C. It will also have the least effect on the time to file and have your return processed.
As long as you're reporting the proper income, how you adjust for the 2025 funds listed on the 2024 1099 is your choice.
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