What are the different accounting methods?

What are the different accounting methods?

There are two main accounting methods: cash basis and accrual basis. Would you like to know more about each?

Yes, please explain the cash basis method.

The cash basis method records revenues and expenses when cash is actually received or paid. It's simpler and often used by small businesses.

And what about the accrual basis method?

The accrual basis method records revenues and expenses when they are earned or incurred, regardless of cash flow. It's more accurate for larger businesses.

Which method is better for my business?

It depends on your business size and needs. Cash basis is easier for small businesses, while accrual is better for larger ones with complex transactions.