S-Corp Delayed Payments

[askreddy]

Hi,

I own S-corp and 2013 total revenues are 130K. I also pay to other corps that I get services from.

As All the payments to other corps are not taxable from my company.

Can I make any delayed payments to other company’s in the next financial year 2014.

Ie.. I was supposed to pay them 30K but I paid only 20K in 2013, Can I pay the 10K in 2014 Jan/Feb and show them in 2013 tax return. Else I have to pay tax on 10K as my company income.

Any suggestions.

Thanks in Advance.

[tallen]

What sort of book-keeping system do you have? Are you using cash basis or accrual basis accounting?

[Freelancier]

Are you using cash basis or accrual basis accounting?

This is the key question. If cash (which is most common for smaller businesses), then "no, you can't shift your late payment into a previous year, because the minute you pay it is the minute the debit is recognized".