>I've already said that a good accountant should be consulted. I couldn't tell you if it applies to one or the other, only that there are IRS rules that specify how you can realize the revenue.
>
>>It depends on whether you report based on cash or accrual basis.

You do not need to consult an accountant, good or bad, about these things if your business runs on the cash basis.

Most small service or consulting type businesses, such as an independent VFP developer, would not have much reason to NOT be on a cash basis. Accrual recordkeeping is much more complicated.