Unlock the Hidden Truth: Why Choosing Between Cash and Accrual Accounting Could Make or Break Your Business Success
Cash Accounting Simplified
When it comes to business, revenue gets recorded when money is received, and expenses are logged when payments are made. It’s the simplest way to track cash flow, which is ideal for smaller businesses or individuals who want a clear picture of their bank balance.
Say you run a freelance design business. If you complete a project in May but don’t receive payment until June, the earnings are recorded in June using cash accounting. This method helps you avoid confusion about what funds are immediately available and eliminates guesswork.
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