 So exceptions, these rules do not apply to the following. So they don't apply to one small business taxpayers defined earlier under inventories, and two, property you produce in your indirect costs of producing the property are $200,000 or less. So once again, property you produce in your indirect costs of producing the property are $200,000 or less. So special methods. There are special methods of accounting for certain items of income or expense. These include the following, amortization, discussed in chapter eight of publication 535. Then we've got the bad debts discussed in chapter 10 of publication 535. So amortize it. It could easily be amortized. And addition is kind of similar to depreciation. So except you're doing it for like intangible assets for example, that you might have to amortize the value of the intangible assets over a certain time period, bad debt is typically gonna be an issue if you're dealing with accounts receivable, meaning if you have a type of business where you do the work first, you bill the client, and then you have to track the accounts receivable, then the question is, well, what if they don't pay you? Then if you already recorded the income in the past, then you've got this bad debt situation that you're not gonna get paid. And the question is, when do you get to expense or deal with the bad debt? Because under accounting methods, there's an allowance method and a direct write-off method and so on. And you've gotta tie it out to what the tax code wants as well. So depletion discussed in chapter nine. So depletion is kind of similar to again like a depreciation type of situation except you have a natural resource that you're actually consuming. So if you had like an oil well in the ground or something like that, you might have to try to value the amount that you're gonna get out of that. And then as you start to use up the resource and pull it out, then you're depleting it and you'd have to record the depletion. Then depreciation discussed in publication nine, four, six have a depreciate property. They just slowly depreciate. That's the one that most small businesses are probably gonna be still subject to, right? Because that's what small businesses when they will end up possibly likely needing to deviate if they buy equipment, large pieces of equipment that should be going on the books as an asset as opposed to simply expensing them when purchased. Installment sales discussed in publication five, three, seven. So installment sales are gonna be a special design of a sale when you have particular situations in place with regards to the sales. The sales happening in installments. So long-term contract methods of accounting. So that would be another industry specific type of thing. And that's in section 460. So that might be like for contractors that do long-term jobs because the revenue recognition principle will usually be that you have to record revenue when you complete the job. That would be when you give inventory. For example, if you're selling inventory or when you complete the service if you're doing service business. But what if you're in a long-term job and it's gonna take you multiple years to make a building or something? Are you gonna wait five years until the building is produced or should you use some other kind of revenue recognition principle, recognizing revenue as you're building this long-term project which could include completed contract or percentage of completion. For example, those are kind of specialty areas and be careful when if you're doing taxes for other people you might wanna specialize in industry. So all of these items are kind of specialized to particular industries except depreciation which you'll probably deal with in most of the industries. But every industry could have its own particular their particular little quirk that you might wanna specialize in for that particular little quirk. So change in accounting method. Once you have set up your accounting method you must generally get IRS approval before you can change another method. So a change in accounting method includes a change in, one, your overall method such as from cash to a cruel method and two, your treatment of any material item. So that's why you wanna get the accounting method correct the first time. You might have to change it in the future. You would think that the IRS would want some kind of rationale for changing it. So for example, if you now have inventory being a more significant part of your business and you were changing from a cash to a cruel method you would think that that would be something that the IRS would approve of in that case. But if you're just saying I just wanna change methods just because can I change methods? Why? Cause I want to then the IRS you would think they would be a little bit more skeptical wanting to stay with consistency in that process. So to get approval you must file form 3115 you can get IRS approval to change an accounting method under either the automatic change procedure or the advanced consent request procedures. You may have to pay a user fee for more information you could see the instructions for form 3115. So automatic change, change procedures. So how do we do this? Certain taxpayers can presume to have IRS approval to change their method of accounting. The approval is granted for the tax year for which the taxpayer requests a change, year of change if taxpayer complies with the provisions of the automatic change procedure. So no user fee is required for an application filed under an automatic change procedure generally covered in revenue procedure 2015-13, 2015-5 IRB 419 which is available at the IRS website. So generally you must use form 3551 to request an automatic change for more information you could see the instructions for that form 3115 3115 that is.