I don't have method of cash accounting as I don't collect $, it all goes direct to Thirty-One. How do I answer the Method of Accting ? I am an Independent Consultant.

Forum|Forum|4 years ago
February 19, 2022
2 replies
39 views

No text available

TurboTax Self Employed Online

VolvoGirl

Level 15

That's not what Cash Method refers to.

The most common method is CASH. It means you report your income in the year you actually receive it and report your expenses in the year you actually pay them. See,

https://ttlc.intuit.com/community/business/help/what-is-the-cash-method-of-accounting/00/25658

The ACCRUAL method of accounting is often used by businesses that carry an inventory. You report your income in the year you earn it (not when you receive it) and report the expenses in the year you incur them (even if they aren't paid yet). See,

https://ttlc.intuit.com/community/business/help/what-is-the-accrual-method-of-accounting/00/26034

Anonymous_

Level 15

I don't have method of cash accounting as I don't collect $, it all goes direct to Thirty-One.

If Thirty-One is your agent for collection (i.e., Thirty-One accepts payment from others for you), then when Thirty-One receives the funds it is the same as you receiving the funds.

In short, receipt by your agent (Thirty-One) constitutes receipt by the principal (you).