Accrual vs. Cash Basis at a Glance

Cash basis records revenue and expenses when cash actually changes hands. Accrual basis records revenue when it's earned and expenses when they're incurred, regardless of when cash moves. Accrual is required under GAAP for most larger businesses because it better matches revenue to the period it relates to.

“Which is best for your business?” “Which method is easier?” “Which method gives you the information you need to manage your business effectively?”

The last question is the important one, at Olbrych Accounting, we help business owners understand their financial information, not just keep the books. Because having accurate financial reports is only valuable when you receive and understand them in time to make informed decisions.