The process of selecting appropriate accounting methods for a company has become a daunting task in recent years. The vast range of methods available today, coupled with the resource constraints companies face in making informed tax decisions in light of constantly changing legal authorities, often result in a company’s using unfavorable accounting methods.
If your company seeks to accelerate cash flow or increase its NOL carryback potential, you may benefit from an accounting method study. While many accounting method changes require the advance consent of the IRS ("non-automatic"), the number of accounting method changes that can be made automatically ("automatic") has increased over the years. Further, companies involved in restructuring transactions may be unaware of the specific accounting method change opportunities available to them, missing opportunities to identify more effective accounting methods.