Hello,
I am a US expat based in France where I started independent consulting work as an "autoentrepreneur" (i.e. sole proprietor).
I took on my first client in Q4 of last year, completed two-thirds of the project before year end, but did not receive my first payment until January 2023. I am still waiting on additional payments from the client, due to their long bill processing cycles.
For French taxes, I am required to report income on a cash basis and receive a percentage deduction for expenses. Since I did not receive payment until 2023, that means all my reporting should be on my 2023 return.
For my US tax return, it makes sense to me that I should use the same cash accounting method, instead of the accrual method. That said, it seems strange to me that most of the project work was done in 2022 while the income should be reported in 2023.
Am I approaching all this correctly?
Thank you,
M
