Cash V.S Accrual Accounting

Cash Accounting

Cash rules/ Cash is King. With the Cash accounting, you get paid faster and usually right on the spot. And usually small businesses use cash accounting. With cash accounting, you get paid for whatever it is that you did or sold right on the spot.

Accrual Accounting

With Accrual accounting, you might do a service before getting paid and then the buyer might not have enough money to pay it off, hence wasting your time and theirs. And they might not ever pay it off. Accrual accounting is mostly used by big businesses, and you could usually do more stuff with it, and it is harder to have it stolen and then used.


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