I read your posting about year end inventory purchases. How do I know what my method of inventory is? Jody
Jody, your method of accounting is set when you file your first tax return. Your tax preparer marked a box on the return establishing your method of accounting. You are stuck with that method unless you file an application with the IRS for a change of accounting method. The process of obtaining a change in method is fairly complicated so make sure that you study this carefully and get professional help if you want to make a change.
You can determine your method of accounting by looking at your tax return and finding the box that tells your method. Where to find the box depends on your type of business. On the Kopsa Otte website I have posted a chart to show you where to look. Simply click on this link to take you to the chart.
Jody, your method of accounting is set when you file your first tax return. Your tax preparer marked a box on the return establishing your method of accounting. You are stuck with that method unless you file an application with the IRS for a change of accounting method. The process of obtaining a change in method is fairly complicated so make sure that you study this carefully and get professional help if you want to make a change.
You can determine your method of accounting by looking at your tax return and finding the box that tells your method. Where to find the box depends on your type of business. On the Kopsa Otte website I have posted a chart to show you where to look. Simply click on this link to take you to the chart.
http://www.kopsaotte.com/salon/?q=node/12
It is a pleasure serving you.
Larry Kopsa CPA
