Accounting methods

Understanding the impact on business decisions.
Understanding the impact on business decisions.

The process of selecting appropriate accounting methods for a company has become a daunting exercise. The vast range of methods available today, coupled with the resource constraints companies face, often result in a company’s using unfavorable accounting methods.

Companies should regularly evaluate their accounting methods for tax purposes, identify planning opportunities and exposure items at the earliest possible time, and take corrective action.  Through analysis of several categories of items, including timing of income and deductions, cost capitalization issues and other accounting method issues, companies can evaluate their ability to utilize, change to, or adopt advantageous accounting methods. 

A much needed fresh look

PwC’s Accounting Methods team can help your company understand the impact of business decisions on accounting methods and inventory calculations − and the impact of accounting methods and inventory calculations on your business.

We can help you with:

  • Increasing cash flow and deferring income taxes by implementing more favorable, allowable elections and methods
  • Taking a fresh look at your tax position to better understand opportunities and exposures
  • Reducing potential IRS audit adjustments by bringing improper methods of accounting into compliance
  • Identifying new opportunities that may have arisen due to law change or change in IRS positions/policies
  • Simplifying calculations to free up important financial accounting and tax department resources