Is it okay to keep track of accounts receivable and accounts payable for my reference but still mark cash basis accounting on my tax return?

1 Answer 1



The IRS doesn't care what management accounting system you use for your personal use, only that you use the system they prescribe when talking to them.

If you look at the accounts of any public corporation they will almost always show figures for future tax liabilities and/or assets. That's because the accounting system they are required to use in their annual report doesn't line up with how they report and pay their taxes.

  • Thank you! If I was audited, and had marked cash basis on my tax return but all of my records had accounts receivable and accounts payable, would there be a problem?
    – Someone
    Commented May 9, 2022 at 3:24
  • @Someone modern accounting software can produce both types of report.
    – Dale M
    Commented May 9, 2022 at 3:52
  • What if my software can't? I don't think ledger (ledger-cli.org) can. Do I need to switch to another accounting program?
    – Someone
    Commented May 9, 2022 at 3:54

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