capitalizing
How does capitalizing expenses work with cash basis accounting? If we are capitalizing for past expenses that were paid and cash received in this period? Thanks!
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If you are capitalizing, you aren't working on a true cash basis -- rather a "modified" cash basis.
If you are going this route, I'd hang up the fixed assets AND any long-term liabilities on your balance sheet. D&A as you would under accrual basis, but run everything else on a cash basis.
that said, I'm not a CPA but rather a finance guy who recently ran the acquisition of a few small groups that used the cash basis. YMMV.
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