When adding a 1099-NEC, what does it mean about the accounting method

[kley2245-]

What does it mean about accounting method for the payer
 

[Bsch4477]

Your method is almost certainly cash which means that income is reported when received and expenses are reported when made. 

[VolvoGirl · Accepted solution]

You probably use the cash method.  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