Construction industry--Accounting, tax accounting, construction contractors
Many tax preparers still have difficulty determining and properly communicating the allowable tax accounting methods and bookkeeping procedures needed for small construction contractors, especially those having partially completed contracts at year-end. For many small construction contractors, the Internal Revenue Code is confusing and even court opinions give mixed signals as to which accounting method is permissible. This paper provides a discussion on the allowable methods of tax accounting and provides a decision heuristic to simplify the choice of allowable methods. The paper also offers suggestions about bookkeeping procedures.
Barnes, J. N., & Black, K. (2001). Which Accounting Methods for Small Construction Contractors are Allowed for Tax Purposes? Which is Best? A Decision Heuristic Helps Choose. Mountain Plains Journal of Business and Economics, 2(1). Retrieved from https://openspaces.unk.edu/mpjbt/vol2/iss1/6
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