Case Study: Optimizing Taxes by Switching Accounting Methods

A masonry business ran into some issues using their current system of accrual accounting. 老葡京手机app helped them switch to cash using IRS reporting exceptions.


A stonemasonry business encountered significant tax liabilities due to its use of the accrual method of accounting. Because the business was a C corporation 和 the 2017 Tax Cuts 和 Jobs Act offered opportunities for tax relief to organizations such as theirs, the owners reached out to 老葡京手机app’s construction 和 real estate team for assistance.


老葡京手机app’s team was familiar with the tenets of the Tax Cuts 和 Jobs Act due to having assisted several other businesses 和 advised the stonemasonry business to switch their accounting to the cash basis, which was available to businesses with less than $25 million in annual gross receipts. With 老葡京手机app’s guidance, the company revised its tax filings under Section 481a of the Act.


老葡京手机app successfully deferred $300,000 of taxable revenue over a four-year period by aligning revenue recognition with actual cash receipts 和 significantly lowering the stonemasonry company’s tax liability. The organization also decreased its taxable revenue for future years, an unintended additional benefit to collaborating with 老葡京手机app. The result: long-term tax savings 和 financial stability.

Please contact Tom Bailey via our online 触点形式 for more information.

Councilor, Buchanan & 老葡京手机app(老葡京手机app) is a professional services firm delivering tax, accounting 和 business advisory expertise throughout the Mid-Atlantic region from offices in 马里兰州贝塞斯达 和 华盛顿特区.

联系 Tom Bailey, CPA, CVA查看配置文件

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