My Queue

Your Queue is empty

Click on the next to articles to add them to your Queue

Finance

Use the Accrual Method?

Tax tips for business owners

Business owners using the accrual method also have some specific tax-saving steps they can follow. Review your accounts receivable if you are an accrual taxpayer to see if anything is partially worthless. If it is, you can take a deduction for a portion of the amount of the uncollected debt. Check with your accountant to determine whether you meet IRS requirements to claim a bad-debt deduction. Also scrutinize your inventory for obsolete items. If you dispose of the inventory or sell it below cost by the end of this year, you can receive a deduction.

Another strategy for businesses using the accrual method is to delay shipping products or providing services until the beginning of your 2003 tax year.

Source: "Get Your Tax Straight"