Hello cutbanlemon
In regards to whether or not you show checks received as income for 2024 tax year, depends on the method of accounting you are using (cash or accrual basis accounting). Since you mentioned that you are using cash-basis accounting, you will report income in the tax year in which you received payments (cash, check, whether the check(s) is(are) presented or not, electronic, etc). Income you received will not be reported as retained earnings, it would simply be revenue, which in turn is reduced by expenses associated with your business, to yield a net profit or loss, which is ultimately what you will report on your Schedule C. In short, you would have to report the income and pay taxes on it for the 2024 tax year.
