August 2021

For example, it might appear that the company has a lot of cash in the bank and positive net revenue, even though it owes thousands of dollars to its suppliers. Cash and accrual accounting are two different accounting methods, so it’s good to know how each operates as you decide how to account for your […]

How businesses report their financial performance to stakeholders is an important factor in accounting and overall financial management. Businesses can either use the cash basis accounting method or the accrual method. The decision is based on a lot of factors, however, it majorly depends on the size of the business. Income and expenses are reported