Understanding Cash Basis and Accrual Basis Accounting: Which Is Right for Your Business?

The two primary accounting methods used by businesses are cash basis and accrual basis accounting. The main difference between them lies in when revenue and expenses are recorded. Cash Basis Accounting Under the cash basis method, revenue is recorded when cash is received, and expenses are recorded when they are paid. This means that ifContinue reading “Understanding Cash Basis and Accrual Basis Accounting: Which Is Right for Your Business?”