Is it okay to keep track of accounts receivable and accounts payable with cash basis accounting?
<p>Is it okay to keep track of accounts receivable and accounts payable for my reference but still mark cash basis accounting on my tax return?</p>

<h2>Yes</h2>
<p>The IRS doesn't care what management accounting system you use for your personal use, only that you use the system they prescribe when talking to them.</p>
<p>If you look at the accounts of any public corporation they will almost always show figures for future tax liabilities and/or assets. That's because the accounting system they are required to use in their annual report doesn't line up with how they report and pay their taxes.</p>

united-states tax-law irs