Reports for US Income Tax on Cash Basis

Business Central/NAV User Forum
1

We generally manage our business on an accrual basis, but we pay taxes within the US on a cash basis. As a cash basis taxpayer, we only report income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income, nor deduct promissory notes as payments.

I saw a post from almost 20 years go that someone created custom reporting for this. I’m hoping someone has a set of sample reports or an extension for Dynamics 365 Business Central we could leverage and learn from.

2

David,

I would look to this APP to accomplish what you are accomplishing. As an Accountant, this is feature/function you need an APP:

https://www.simcrest.com/simcrest-apps/cash-basis/

Hope this helps.

Thanks,

Steve

3

In General Ledger Setup there is a flag for Unrealized Tax. When this is toggled on, tax is calculated but is not due until the invoice is paid. The standard Tax Collected Report then becomes a cash basis report. I have used this several years ago and it worked beautifully. Please test and verify that it works to your satisfaction.