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August 28, 2024
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when to account for self employment income

  • August 28, 2024
  • 1 reply
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i'm doing some consulting after leaving my w-2 employment world behind.  As the frequency of income can vary depending on the work, do I calculate income for a quarter based on when I invoiced for the work, or when I receive the payment?  One of my clients has a NET 60 payment term which makes a difference in the time between services rendered and payment actually received.

    1 reply

    Employee
    August 28, 2024

    You are most likely on a cash basis so income is when you receive it. 

    August 28, 2024

    What are the other options?  Is there a IRS pub that describes this?  Also thank you for answering.