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Cash accounting is about to get more use.

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This story appears in the March 2002 issue of Entrepreneur. Subscribe »

A number of entrepreneurs will find good news in a recently issued IRS procedure allowing certain businesses with gross receipts of up to $10 million to use the cash method of accounting for income and expenses rather than the accrual method.

When companies use the cash method, income is taxable when received, and expenses are deductible when paid. With the accrual method, transactions are taxable or deductible when incurred.

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