Re: Does Your Business Use Cash or Accrual Method Accounting?
It is not just the writing off to bad debt as it is more the forward looking having to claim as income yet not having collected the cash to pay the taxes in that income. Y
That can be a problem, there is no doubt, again I am one lucky guy I guess, I have never had that kind of critical short fall in cash flow. Still at the end of the year you could move that income to unearned revenue for tax purposes