There are two main types of business accounting methods: cash and accrual. In general, small-business owners have the option to choose which one to use. Both methods function to keep track of income ...

Accruals: expenses incurred but not yet paid or revenues earned but not yet received that affect a company’s bottom line on the income statement. According to the dictionary, “accruals†is a ...

Accrual accounting is used by businesses that comply with generally accepted accounting principles, or GAAP. With the accrual basis of accounting, business events and transactions are recorded to the ...

You’re fresh out of college, a new hire at the local CPA firm. It’s your first tax season, and you’re handed a business tax return to prepare. As you peruse the file, you notice that in preparing the ...

Learn how accrual and cash accounting impact financial statements and IRS rules. Discover which method suits your business ...