Cash Profit
“I operate on an accrual accounting basis but clients are paying me months late, can I switch to cash basis so I don't pay taxes on money I don't have?”
Whether a business can move from accrual to cash basis often depends on the entity type, the size and nature of the business, and how income and receivables are tracked in the books. Late client payments are a common reason owners look at the difference between earned income and collected cash, but the accounting method change can affect how revenue, expenses, and outstanding invoices are reported. The timing of the switch, prior filings, and whether financial statements are used for lenders or other stakeholders can also shape the outcome. A short conversation with a CPA can sort out what applies to your specific numbers.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“How do I know how much of my money is actually mine vs the IRS's?”
“I received a grant from the local government to keep my small business open, is this cash injection considered taxable income by the IRS?”
“I am consistently short on cash when quarterly taxes are due, how do I set up a separate tax savings account without co-mingling my operational funds?”
“I am bundling physical equipment sales with installation services to lower my overall sales tax burden, is this a legally compliant tax strategy?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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