Single member, cash basis, SCorp small business owner, help with a question if you have a moment please
Let's assume a gross income 220k. 90k of that is from a customer prepaying for a year of services back in August. Only 5 months of CoGS were able to be paid out towards those services. This resulted in a net profit of 70k overall pass through. There were no distributions.
Are there any options for amortizing revenue or retaining earnings? I may be thinking about this wrong but it feels like paying taxes on unrecognized profit doesn't seem right. Any ideas? Thanks!
