Coming soon: An updated accounting rule will cause some companies with complex, long-term contracts to recognize revenue earlier than in the past. Plus, a narrow provision of the Tax Cuts and Jobs Act will tie revenue recognition for book purposes to income reported for tax purposes; it may also require advance payments to be taxed before they’re recognized on the financial statements. The net effect of these accounting rule and tax law changes could be substantially accelerated tax bills. Contact us to discuss how the changes will affect your company.
