Cash-Method Threshold: $31M in 2025, $32M in 2026

The $31 Million Accounting Rule Change Every Contractor Should Know
The gross receipts threshold for simplified accounting is $31 million for tax years beginning in 2025 and $32 million for tax years beginning in 2026.

What does that mean for you?

If your construction business averages under that threshold over the prior three years, you can use cash-method accounting.

No accrual. No percentage-of-completion headaches.

Just: money in = income. Money out = expense.

That’s it.

Cash method gives you:

→ Simpler bookkeeping
→ More control over when income hits your return
→ Easier tax planning and timing

If your revenue was between the old threshold and $31M — you may now qualify for a simpler method you weren’t using.

And if you’re already under the threshold?

This is your reminder to make sure you’re actually taking advantage of it.

The right accounting method can defer income, reduce complexity, and keep more cash in your pocket.

Most contractors are on the wrong method.
Talk to a CPA who knows construction.

📅 https://accountingsolutionsllp.com/appointment/
📧 info@accountingsolutionsllp.com

#ContractorTax #CashMethod #AccountingThreshold #ConstructionAccounting #TaxPlanning #SmallBusiness

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For the full comparison, including the 2026 changes to the small contract exception, see Completed Contract Method vs. Cash Basis: What Changed for Contractors.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.