Switching accounting methods can provide instant tax savings for manufacturers
Nov 9, 2018 1:00 AM - As a manufacturer or distributor, you probably determine taxable income using the accrual method of accounting but switching accounting methods can provide tax savings. In the past, anyone with inventory was generally required to file tax returns under the accrual method. The Tax Cuts and Jobs Act changed this requirement in 2018. Under the new tax law, manufacturers can now switch to the cash basis for tax reporting if gross revenue is under $25 million. The new tax law provides many advantages for manufacturers.