Money: How to Change the Accounting Method (267257)

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Money can use two accounting methods to prepare tax reports:

• Accrual-basis accounting regards income in the year earned and deducts expenses in the year incurred, no matter when payment is made.
• Cash-basis accounting recognizes expenses when a bill is paid and income when payment is received.

By default, Money prepares tax reports by using the cash-based accounting method.

Note To change your current accounting method for tax reporting purposes, you must first get IRS approval to use the other method.

To change the accounting method that Money uses to prepare tax reports:

1. Start Money.
2. On the Money navigation bar, click Reports, and then click Reports Gallery. (Click Reports in Money 2000 and earlier.)
3. In the left pane, click Business, and then click Taxes.
4. Double-click Schedule C Report.
5. Click Customize at the bottom of the page.
6. Click the Business tab.
7. Click the Accrual option.
8. Click OK.