Changes in Tax Accounting Methods Simplify Reporting Requirements for Manufacturers

April 2018 One of the chief goals of the Tax Cuts and Jobs Act of 2017 was to facilitate reinvestment in U.S. domestic production. By providing several relief provisions in the Act, lawmakers provides the means to accelerate tax benefits to manufacturers and simplify tax accounting methods. Specifically, a change from the accrual method to the cash receipts and disbursements method (i.e., cash method) can streamline reporting obligations for many small and midsize manufacturing and distribution businesses. The cash method traditionally is used by sole proprietorships and individuals; under the Act, it offers potential benefits to manufacturing businesses as well. View the full article here.