La Quinta, CA
(760) 895-3516

Thursday, April 30, 2015

Accounting Methods

Accrual Accounting Method MUST Be Used By An American Corporation (except QPSC) If (any of the following):
- Average annual gross receipts are over $5 million.
- Engaged in Farming.
- Inventories are required. (note: some eligable businesses may carry their inventories as "supplies & materials" and use another accounting method)

** Corporations using the accrual method DO NOT have to maintain accruals for services in the health, law, engineering, architecture, accounting, actuarial science, preforming arts, or consulting OR the average annual gross income for the past 3 tax years is more than $5 million.