In December 2017, the legislation known as the Tax Cuts and Jobs Act (TCJA) ushered in extensive changes to how businesses are taxed, as well as how businesses approach the interplay between tax and accounting.
The TCJA has significantly expanded the ability to qualify for the cash method of accounting – a historically attractive accounting practice for small and mid-size businesses.
In the video below, we explain how the new tax law simplifies the cash method of accounting for businesses by dramatically increasing the threshold of gross income and eliminating the inventory exclusion.
Have questions? Please don't hesitate to contact us at NTO@cbiz.com or visit our tax reform resource page for the latest updates from Washington.