1jrj
Returning Member

switching to accrual

I am a mental health cnslr, single member LLC. For years I have used cash method. I was burned badly when a company I had a contract with went bankrupt. I had many unpaid invoices. I stopped my business for about 3-4 years but since retiring from a full time job, I have restarted it as telemental health. With third party payers who pay unpredictably I have to wait on at least 75% of my fee and if they won't pay then the client has to pay. With this lag time it puts me at more risk of the client not paying. Some insurance companies only pay the client (not directly to me) so generally if the client is responsible they will pay me but i also do substance abuse clients who are not as responsible. Should I switch to accrual and how do I do that with the IRS