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    5 Replies Latest reply on Feb 23, 2009 11:56 AM by Santa Fe CPA

    Accrued or cash method with raw goods inventory

    jphelps1511 Newbie
      Hello, I'd like to confirm that I can use either the accrued or cash method for tax purposes for my LLC company. Sales are under $1 million and we carry raw goods inventory parts with are components used to make fiber optic assesmblies. We don't stock any finished goods and if we do, it will be a small amount.

      I think we can used either method, but the only "issue" I see is that we must change the dates on the invoices and vendor PO's at the end of the year so that Quickbooks doesn't count the invoice date to the customer and the purchased date of any materials purchased for that job in the current year, but rather, push it out into the next year when the income will be received and the expenses paid for.

      I'd rather not have to adjust these invoices and PO's if the case method doesn't help anywhere else, and if the accrued method doesn't make us do other work.

      Any help would be appreciated, thanks.