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Replying to:
Rainflurry
Level 15

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@7399socks 

 

We operate on a cash basis. Customer requests an inventory item

 

That's the issue.  If you carry/track inventory, you need to be on accrual basis.

 

Per the IRS (Publication 538):

Generally, if you produce, purchase, or sell merchandise, you must keep an inventory and use an accrual method for sales and purchases of merchandise.

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