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New Member
posted Feb 6, 2024 5:08:02 PM

When entering income made from Lyft, it's asking for the Accounting Method: Cash Method (most common) or Accrual Method. Which do I choose? Neither example applies to me.

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1 Replies
Expert Alumni
Feb 6, 2024 5:16:36 PM

Cash would be the default method for most businesses. Accrual means that you report your income when you invoice the customer and expenses when you receive vendor invoices rather than when you receive the money or pay the invoices. That would be hard for you to report since your income will be reported on a cash basis per the Form 1099-NEC or 1099-K that you receive. So, cash would be the preferred choice.