2 Comments
 

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.

Director of Finance and Corporate Development: 2020 - Present Manager of FP&A and Corporate Development: 2019 - 2020 Corporate Finance, Strategy and Development: 2011 - 2019 "An investment in knowledge pays the best interest." - Benjamin Franklin
 

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