What are the necessary steps to change a municipality accounts from cash to accrual basis?

Must get permission from the IRS generally explaing the change in the accounting method there may required an adjusting entry that could produce tax consequence by such changeover..

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Originally Posted by delite

must get permission from the irs generally explaing the change in the accounting method there may required an adjusting entry that could produce tax consequence by such changeover..

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Thank you for the answer

Kindly note that I am in Jordan not in USA , we don't have the problem of IRS

My question was about the steps to be followed in the process of moving from Cash to accrual accounting basis

Regards

Ziad

Regardless of where you are, chang of an accounting method would produce in the year of change unusual additions to or losses to earning and profits as a result. To amelioate the impact, spread the change over an extetended period ot time.

Thank you once more, Kindly note the following
a- I am working in government corporation
b- This is a non profitable one.

c- still I am asking for the steps from where to start etc...

Regards