Where do you want the income, 2011 or 2012? You have the capability to delay year end billings or speed them up to assist in moving receivables to your year of choice. Cash basis accounting assists with allowing this flexibility in determining your income as well as expenses. This is also part of the basis for my end of third quarter tax planning
There is also some flexibility with year end expenses. Bonuses can be delayed if more advantageous in the next year. Other expenses can also be delayed and sped up. Most of my client’s credit card statements have mid month due dates. They have the ability to pay or defer to the due date depending on a couple of items. Typically these are capability and desire. Also remember that is you purchase a large amount of assets/ supplies you have to have possession at the end of the year and paid for.
But also keep in mind that the IRS is planning to look more and more at multiple years for audit purposes. This is one of the reasons they want the QuickBooks file. So trend carefully and follow expert advice, not just some firm claiming to know all.