The accounting method is a set of rules used to determine how income and expenditures are reported, and the method used in keeping the partnership's books and records will be used to calculate ordinary income,
Permissible methods include cash, accrual, or any other method authorized by the Internal Revenue Code. For specific rules and information on each accounting method, review the IRS Instructions for Form 1065.
To select the accounting method used by a partnership, from the Main Menu of the partnership return (Form 1065) select:
- Heading Information
- Other Categories
- Method of Accounting - Select Cash, Accrual, or Other.
Additional Information: