Exploring Cash Basis Eligibility for a Competitive Edge

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If you are a primarily a service-based business that has elected to utilize a pass-through tax operating structure treatment (i.e., S Corporation or partnership) and are not currently reporting your taxable income on the cash method, you are most likely at a disadvantaged cash flow financing position as compared to your competition.

Unlike you, your competition is not:

  • Cash flowing taxes (i.e., for taxable income not yet collected) with their line of credit
  • Financing the accrual basis tax bite via costs containment
  • Using deferring tactics such as deferring business expansion or ongoing R&D development.

These are all factors that can diminish your company’s overall …read more

Read more here: Real Estate

About Aronson LLC

Aronson LLC has written 576 post in this blog.

Aronson LLC has been thinking ahead for its clients for more than 50 years. Aronson’s construction, real estate, government contracting, nonprofit, technology and private industry experts provide innovative audit, tax, and consulting services that help its clients move to the next level. From start-up to exit strategy, Aronson works with companies throughout the entire business lifecycle by proactively identifying opportunities and addressing challenges so that clients are able to focus on their core business. Aronson shows companies how to rethink everything to be more profitable, more competitive and better prepared for the future.

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