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Tax Law Expands Accounting Method Options for Small Businesses

Accounting Method

The Tax Cuts and Jobs Act allows more companies to qualify for the cash basis method and elect out of complex inventory and percentage-of-completion accounting rules.

Thanks to changes included in the Tax Cuts and Jobs Act (TCJA),¬†many more businesses can now use the simpler and more-flexible cash method of accounting for federal income tax purposes. The new law also includes some other tax accounting changes that are good news for small businesses. Like many TCJA changes that apply to businesses, these provisions are permanent. Here’s what you need to know. Read more