Let's not forget, if we use QuickBooks, even if we report as cash or hybrid, we are using an accrual based software.
If we enter Vendor bills or invoice our customers - that is accrual. Pure cash basis eschews bills and invoices , they are disallowed by definition.
Payroll accrues liabilities. Taxes are always due after earned. But paychecks themselves are a cash basis record, as defined by the IRS. When I run payroll on 7/1 I cannot record that as having happened the day before. Conversely when i run payroll on 6/29 i have an expense for full gross wage and a bill essentially for my company share on 6/29 with a due date in July.
I get to use the IRS approved hybrid method of my choice as long as I am consistent. Expenses only occur when my vendors get paid but I claim all income in hand regardless of invoice date.
Should I not report all constructive receipts as income per pure accrual and avoid tax?
My CPA supports moving prepaid rent to rent income