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pre payment more than 600

i received a pre payment for more than 600 but i cannot deliver before trhe end of the year, how do i declare this?

1 Reply
Employee Tax Expert

pre payment more than 600

Hi @Blakor65! This is a great question, and it all depends on whether you use the cash basis or accrual basis of accounting. Most small businesses use the cash basis, which means you report the income in the year you received it, even if you haven't technically earned it yet (ie. you haven't delivered).

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