How do cash and accrual accounting differ?

Answer When starting a business, the cash or accrual method of accounting must be chosen. It's important to make that decision carefully because it's very difficult to change once any financial reporting ... Read More »

Top Q&A For: How do cash and accrual accounting differ

Cash Accounting vs. Accrual Accouting?

The preparation of personal or business financial statements involves reporting income and expenses in a consistent manner. The need for consistency and comparability of financial statements has he... Read More »

Change in Accounting From Accrual to Cash Method?

Accrual accounting and cash basis are the two most common accounting methods businesses use today. Each method has a specific purpose and set of guidelines companies must follow. Cash basis account... Read More »

How to Explain the Cash vs. Accrual Accounting Method for Schedule C?

Business accounts are usually managed by one of two methods: the cash method or the accrual method. Each method alters both the profit-and-loss statement and the balance sheet. Any business can use... Read More »

How to Decide Between Cash and Accrual Accounting for your Business?

Accounting has long surpassed the bean counter, and new business owners are well-advised to consult a professional on complex issues. Still, there are fundamental accounting decisions you can make ... Read More »