You are on page 1of 1

Cash-basis accounting is a simple way to manage your books.

With cash-basis
accounting, you only record transactions when you physically make or receive a
payment.

With accrual accounting, you must record money whenever a transaction takes place,
even if you don’t physically give or receive money. You must record two entries for
each transaction in a double-entry accounting system. Consider using accrual
accounting if you offer credit to customers.

You might also like