Tax Preparer Posted April 5 Report Share Posted April 5 I am new to the tax preparation world and have a question that I can't figure out the answer to. I just started using ATX, and I need to figure out what to do when 1099-NECs are on a cash basis vs financial statements are on an accrual basis. Here is the situation: Client received 1099-NECs from clients that made payments for services in 2023 and also that prepaid all of 2024. The client is on a cash basis, so they reported all amounts paid on their 1099-NEC. The taxpayer records his books on the accrual basis, so the total income on the books is lower than the 1099-NEC totals. Not sure how to correctly put this on the Schedule C so that the numbers work out the way they are supposed to. Please help! Quote Link to comment Share on other sites More sharing options...
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