Cash vs Accrual Accounting: Small Business Edition
Should small businesses use cash or accrual accounting?
Well, that depends, as every small business has its specific needs and goals. You’ll ultimately need to choose an accounting method, cash vs accrual.
Regardless of whether you choose accrual vs cash basis accounting, you’ll be recording sales and expenditures. The difference is in how each model processes this information. Your financial reporting method will determine at what point in the transaction process your account for a service being completed.
Deciding between cash or accrual accounting systems will come down to how you want your company to operate. To help, we’ve made this cash vs accrual accounting small business guide, to help you make an informed choice.