1125-a clarification

[mvp2885]

My question relates to cash vs. accrual method. According to the TJCA you may report under the cash method if you are a qualified small business taxpayer. My question(s) are the following.

1. Can a company keep an accrual method of accounting in quickbooks, and report cash basis come tax time?
2. If a company has inventory, do they have to do accrual in quickbooks and can they do cash come tax time?
3. Regardless of doing cash or accrual, 1125-a always has to be reported if they have inventory?

Thanks.

[Rapid Robert]

I can't answer all your questions without guessing, but since there are no other replies, I will at least offer that Quickbooks does not require you to "do accrual" or "do cash basis". Which method you want to use is just an option for reports, and you can run reports at any time using either method. It is only the tax return that requires you to pick a method and stick with it.