Cash basis v. Accrual: The cash basis method of accounting recognizes transactions only when cash or equivalents have been exchanged. Accrual basis follows the matching principle and records (recognizes) transactions as they occur

  • Only accrual basis accounting is an acceptable method under Generally Accepted Accounting Principles US
  • Cash basis records revenue and expenses only when cash or equivalents have been exchanged
  • Accrual basis records revenue when earned and realizable and expenses as incurred, even if cash has not been paid

Write Off Apps

App for Entrepreneurs to Learn Tax Savings, Structure Right, & Grow Their Business with an Easy Game. A player chooses a character and plays each round against an opponent answering questions and learning on how to structure a business right, pay less tax, and more along the way. It is a fun and interactive way to learn all you need fast!

Free Cheat Sheet

Free Cheat Sheet

Subscribe for your free Cheat Sheet and to start your Know Your Numbers Journey

« Back to Glossary Index