Archive for Timing of Income/Expense
Dec
10
Timing of Income/Expense
Posted by: | CommentsAn expense item is counted when you pay. Sign the check. Sign the credit card slip. Postmark the mail. When the funds leave your control, payment has been made.
With income, you cannot simply wiat to cash a check — IRS says you have “constructively received” the money — it’s yours right now. (You are free to delay billings, though!)