(303) 771-2727

Tax Accounting Methods

We Work Hard To Identify The Right Accounting Method For Our Clients

Convergence CPA Group works to identify and implement favorable methods of accounting for clients. After reviewing certain key information, we provide a list of proposed accounting method changes, including potential cash benefits that may be generated by the changes, along with the steps required to implement the change. Our recommended accounting method changes may result in a deferral of the payment of federal income taxes, or it may identify improper accounting methods to reduce tax exposure.

We assist existing businesses in adopting tax accounting methods by filing Federal Form 3115 with the IRS. We also understand that getting off on the right foot is essential for any business, and we assist start-ups and recently acquired companies in adopting the most efficient methods from the beginning. Some of the changes Convergence has delivered include income items and deduction items, which can be found below.

Income Items

Advance payments

Trade discounts

Deferral of sales revenue

Gift card revenue

Disputed receivables

Cash discounts

Warranty income

Non-accrual experience method

Percentage completion method

Deductions Items

Prepaid expenses

Materials and supplies

Self-insured medical reserves

Medical portion of workers compensation

Accrued professional fees

Software development costs

Depreciation

Deferred compensation and payroll taxes

Accrued bonuses

Personal property tax accruals

Transaction costs on business combinations

§263A uniform capitalization

Take Advantage Of Tax Saving Opportunities

Contact us today to learn more about how we can help you take advantage of the tax saving opportunities associated with changing your company’s tax accounting methods.