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Many contractors overpay taxes simply because they don’t understand timing.

Many contractors overpay taxes simply because they don’t understand timing.

Cash vs accrual accounting isn’t about complexity—it’s about when income and expenses hit your tax return.

Under cash accounting, you’re taxed when money is received.Under accrual, you’re taxed when income is earned—even if you haven’t been paid.

That difference alone can mean paying tax on money you don’t have yet.

The right method can:• Defer taxes legally• Improve cash flow• Unlock year-end deductions• Prevent double income mistakes

The wrong method can quietly cost tens of thousands.

If you don’t know which method you’re using—or why—it’s a red flag.

Accounting method selection is tax strategy, not bookkeeping trivia.