Federal tax law regarding the timing of when a business must report income and when a deduction may be claimed is extraordinarily complicated.  The Internal Revenue Code and Treasury regulations allow businesses to utilize numerous methods in determining the timing of income recognition and deductions. Whether knowingly or unknowingly, every business adopts a variety of methods when it files its income tax returns.  Potential choices relate to:

  • Depreciation Methods
  • Overall Accounting Methods
  • Long-Term Contract Methods
  • Inventory Cost Accounting
  • UNICAP; and
  • Advance Payments

The choice of accounting method for numerous items throughout the tax return can often have immediate and significant impact on a company’s cash flow, profitability, and risk exposure.  STA’s tax professionals have years of experience in reviewing a company’s specific facts and circumstances and identifying the optimal accounting methods to improve cash flow and defer income recognition and taxes as long as possible.