One of the most often asked questions I get is “what is the difference between cash and accrual.” Most small business owners DO NOT understand the difference – even after I explain it. It is one of the most confusing topics amongst them. So let me see if I can help a little bit.…
We are all in business to make money right? But we are not in the business of paying Uncle Sam. We want to keep as much of our money as we possibly can, especially from him. So as a small business owner, what do you do? You learn the difference between cash basis and accrual…
There are two basic forms of accounting that should be used to track your revenues and expenses – cash basis and accrual basis. Cash basis means that you recognize the income when you receive it and you recognize expenses when you actually pay them. Accrual basis means that you recognize income when you have the…
