@Rick19744 @AmeliesUncle
My business bills have been mostly monthly or one year from date of purchase like August 2021 to August 2022 for example. I don't pay in advance because too much money upfront. When I first begin irs said cash people deduct expenses when they paid them so I went with that. I did not know about this rule. I didn't know about prorating end of year. I thought cash method means pay bill that covers a year and your paid expenses for that year. I thought prorating is for accural method pay bill in one year and keep prorating till next year. Cash method says deduct bills in year you pay them. So I don't need to file form 3115 because I don't want to change accounting method. Since my bills in 2019 and 2020 have been 1 year or less i.e. August 2019 to August 2020 means I dont need to file 3115 right because I did not prorate them from the beginning?
