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 ...

Editor’s Note: Under the 2017 tax reform legislation, if the taxpayer uses the accrual method of accounting, the “all events test” with respect to any item of income is not treated as met any later ...

The type of accounting method a company chooses will determine how it will record and keep track of finances. According to Entrepreneur.com, the two most basic accounting methods are cash and accrual ...

Small business accounting would be much simpler if you got paid for all of your work right away and then paid for all your purchases as soon as you received the goods. The actual situation is more ...

Accrual accounting allows a business to record revenue before cash is collected. Investigate changes in accounts receivable on the cash flow statement to evaluate real cash status. Monitor allowance ...

Learn what every business owner needs to know about financial accounting, accounting software and financial statements.

Should small businesses use cash or accrual accounting? This question gets asked almost as much as “paper or plastic?” and “debit or credit?” While the IRS requires some companies to use accrual ...

In the U.S., there are accounting standards known as Generally Accepted Accounting Principles (GAAP). They are the accounting standards used for all businesses in this country and provide principles ...

Nearly two-thirds of governments worldwide are expected to report on an accrual basis within the next five years, even though only about one-quarter of them do now, according to a new report from the ...

Globally, governments and the public sector are making slow but steady progress in adopting accrual-based accounting instead of cash-based accounting, according to a new report. Fully 56% of ...

Accounting is a comprehensive system for collecting, recording, classifying, summarizing, interpreting, and communicating financial information. It is often referred to as the language of business as ...

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...