it is asking for a cash based balance sheet, and to take out accounts/amounts that do not apply to cash.

Conversion of Accrual to Cash Method to change to Cash method of accounting. This is a rather new company (in existence since 2019) and it meets the cash method of accounting requirements under the TCIA of 2018. However, this company wants to report its financial statements on the accrual method of accounting. The tax preparer needs to convert the accrual method book accounting to cash method for tax purposes. If the following items are reported on the Book Financial statements which report out on the acerual method and for tax the taxpayer is on the cash method, please provide a reconciliation of each item and what the net impact is for tax purposes and what the current year income/expense differences would be. HINT - Think about first what has been reported in the income statement that generated these balance sheet amounts. Book Balance Sheet