Most business professionals understand cash basis and accrual basis accounting on a surface level. However, precious few people have a comprehensive understanding of what each of these accounting terms means and how they differ from one another. Furthermore, understanding these accounting methods is not enough in itself. What matters most is that you implement the optimal method for your unique business.
The accounting method you choose to use can determine how you show a profit in a given year. This directly affects.
The accrual concept of accounting is the only method that is recognized within GAAP principles, the generally.
