Businesses that use the cash method of accounting could strategically defer or accelerate income to lower taxes.nnDeferring IncomennBusinesses that expect to be in a lower tax bracket could potentially defer taxable income to the following year when they will pay taxes in the lower bracket. For example, if your business delivered goods to a customer in December, you could wait until January to invoice them. That way, you'll receive the money in a different tax year than when you delivered the goods.nnAccelerating IncomennOn the other hand, if you expect your tax rates to increase, you might want to accelerate income to ensure it's taxed in the current lower bracket year. You would want to send the invoice immediately and try to collect it before year-end.nnThe same process works for expenses. If you're in a higher tax bracket, you might want to pay more expenses this year to reduce your overall tax liability.