That is incorrect.
Accural basis of accounting means you pay the tax in the year that the revenue is earned.
A client buys a package of 8 sessions that they can use anytime for many years. The client pays $1000 in Dec of 2022, and uses all of the package sessions in 2023.
$1000 is recorded as understand income. Tax is not paid on unearned income in 2022. Tax is paid on $1000 of earned income in 2023 as all of the sessions were used in 2023 meaning the session costs were,from an accounting purpose, moved from unearned to earned income and therefore were taxable.
