Reporting your self-employment income: Reporting Methods
What is the cash method? When using the cash method, self-employed individuals must report income in the fiscal period they receive it and deduct expenses in the fiscal period they pay them.
When using the accrual method, the self-employed individual must report income in the fiscal period they earn it, no matter when they receive it and deduct expenses in the fiscal period they incur them, whether or not they pay them in that period.
There are many considerations in using one or the other so make sure you ask our experts at KD for help.