Tax Year Prior to 2020: Can my business use cash method of accounting? We are an LLC construction company.

Forum|Forum|7 years ago
June 4, 2019
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Our accountant previously used CCM but cash method is much simpler now that we are doing our own taxes.

TurboTax Self Employed Online

Most construction companies use the Accrual Method or some hybrid method due to outstanding accounts receivable and accounts payable. That said, you generally need to stick with the same method that been used in the past for your business, unless you apply (and get approved) for a change in accounting methods. This is done by filing Form 3115 with the IRS. The form and instructions are linked below.

IRS 3115 Form & Instructions - Application for Change In Accounting Method