Accounting Method Selection Checklist

The Accounting Method Selection Checklist is a comprehensive tool designed to assist business owners and financial professionals in evaluating the key factors to consider when choosing between cash and accrual accounting methods for their business. By systematically assessing these factors, this checklist aims to help make an informed decision that aligns with the company's financial goals, reporting requirements, and operational characteristics.

• (1) The type of business you are in

• (2) The first step is to determine whether your business is a sole proprietorship, partnership, corporation, or limited liability company (LLC).

• (3) The accounting method that you are currently using

• (4) If your business is a sole proprietorship, you have the option of using the cash or accrual method of accounting.