While every public company uses accrual basis accounting in its financial reporting, it’s not the only bookkeeping standard out there. Cash basis accounting also has practical applications in business ...

Relatively early in a law firm's existence, a decision is required concerning whether to report financial activities to the Internal Revenue Service on a "cash" or "accrual" accounting basis.

Most businesses handle their accounting on an accrual basis. What is accrual basis accounting? It’s the practice of recording transactions at the point of origination, even if no money changes hands ...

Accounting is conducted under the guidance of rules and regulations created to ensure a common basis of understanding between accountants and the users of financial statements produced through ...

Starting a business can be fun, but choosing an accounting system is boring. As soon as a business begins operations, the owner must decide which accounting method to use to record the company's ...

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

Every year, for decades, the City of Chicago claimed to balance its budget as required by state law. Yet the City of Chicago still accumulated many billions of dollars of unfunded but real obligations ...

In recent times, discussions have been rife in the public sector on the merits of shifting from cash to accrual basis of accounting for purposes of enhancing fiscal reporting. Accrual basis of ...

The International Public Sector Accounting Standards Board has proposed an update to its rules for first-time adoption of accrual basis International Public Sector Accounting Standards. Exposure Draft ...

n December 1999, legislation repealed the availability of installment-method reporting for accrual-basis taxpayers. (See “Installment Sale Reporting for Accrual-Method Taxpayers—Gone But Not Forgotten ...

Cash basis accounting is often better for simpler accounting situations, while accrual basis accounting is usually better for more complex finances. Discover which one is your perfect fit. Explore Get ...