cash basis

Cash vs. accrual basis for bookkeeping

Cash vs. accrual basis for bookkeeping

Cash or accrual--how do you choose? Each method has its pros and cons, and picking one really depends on your needs and the needs of your business. The most important question to ask yourself is, what do I need to know from my accounting system? The answer to this question will determine whether you should go with the cash method or opt for the generally more expensive and time-consuming accrual method.