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You need to determine whether the cash or accruals method is most appropriate to your business.
Generally, the cash method will only be appropriate for business income where the income is derived from the provision of knowledge or the exercise of skill possessed by the taxpayer in the provision of services (subject to some conditions listed in TR 98/1).
Refer to TR 98/1 at the link below for guidance on which method would be most appropriate for your business:
http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR981/NAT/ATO/00001 |
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