Focus CPA Group, Inc. (562)281-1040

The degree of control that small business owners and the self-employed have over the timing is much greater than that of employees, and also depends on the structure of their businesses. For example, if a person is small business owner, and thus self-employed, without having formed a legal entity (there would be a Schedule C in your tax return), then the control over the timing of income is based on the business cycle ? i.e., providing services or selling goods, and then billing and collecting from customers. For example, delaying year-end billing can shift income from the current year to next year.

Also, incurring and paying the necessary business expenses is controllable, at least to some degree.