On April 1, 2019, New York State Legislators approved their 2020 fiscal year budget, which included several provisions that will adversely affect New York companies, especially manufacturers’ sales tax expense.

The Tax Cuts and Jobs Act liberalizes the eligibility requirements for certain accounting methods that are generally easier to use and more flexible. This article highlights a higher gross receipts limit for eligibility to use the cash method, simplified alternatives for reporting inventory, and an exemption from the UNICAP rules. It also explains the pros and cons of the cash and accrual methods.

In the past couple of years, major changes have been made to the taxation of both C corporations and pass-through entities (including sole proprietorships). So what’s the best entity choice for your small business?

About Dannible & McKee, LLP

Dannible & McKee, LLP has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. The hallmark of our firm is our technical expertise, depth of experience and our approach to delivering quality service to our clients. W e understand the unique needs of manufacturers, and our team of manufacturing specialists are well-versed and experienced in manufacturing concerns, and able to address your needs. We are involved in many organizations that serve manufacturers including the Manufacturers Association of Central New York (MACNY) and the Technology Development Organization. We are also Upstate New York’s first-ever affiliate of GGI, the prestigious international organization of professional firms.

To learn more about Dannible & McKee, visit us at: www.dmcpas.com