Hi thank you for using Intuit TurboTax AnswerXChange
The Canada Revenue Agency (CRA) guidance states "If you decide to change your method of reporting income from the accrual method to the cash method, use the cash method when you file your next income tax return. Make sure you include a statement that shows each adjustment made to your income and expenses because of the difference in methods."
For more information related to your scenario, you can contact CRA and/or review the following link:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partners...
Hope this helps
Sign In
Canada (English)
EN
