NASSAUSUFFOLK

 View Only

  • 1.  Change of accounting methods

    Posted 09-05-2018 01:53 PM
    ​I have an S corp. that is selling items retail on the internet.  It has no inventory. The company has been on the cash basis since inception.
    If the sales are more than $1 million, does it have to change it's accounting method to the accrual basis or can it stay on the cash basis?
    Any advise would be greatly appreciated.

    ------------------------------
    Joseph Schnitzer
    CPA
    JOSEPH SCHNITZER, CPA PC
    Woodmere NY
    ------------------------------


  • 2.  RE: Change of accounting methods

    Platinum Most Valuable Member
    Posted 09-06-2018 08:00 AM
    under the TCJA of 2017, the threshold is increased to $25M

    ------------------------------
    Stephen Mankowski
    215.682.7366
    ------------------------------

    Original Message


  • 3.  RE: Change of accounting methods

    Platinum Most Valuable Member
    Posted 09-06-2018 08:05 AM

    Steve is absolutely correct, as usual.  J    You do not need to be on the accrual basis.

     

     

     

    I would just like to alert you to the fact that  you may very well need " Product Liability " insurance.  This is true even if your client is drop shipping.

     

    My client was just held liable in this situation.

     

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     




    Original Message


  • 4.  RE: Change of accounting methods

    Posted 09-06-2018 04:18 PM
    ​My concern is that I saw an article on the internet that states that companies that provide wholesale trade or retail trade are not eligible for the cash method and must use the accrual basis.

    ------------------------------
    Joseph Schnitzer
    CPA
    JOSEPH SCHNITZER, CPA PC
    Woodmere NY
    ------------------------------

    Original Message


Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.