There are two main types of business accounting methods: cash and accrual. In general, small-business owners have the option to choose which one to use. Both methods function to keep track of income ...

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.

Opinions expressed by Entrepreneur contributors are their own. Should small businesses use cash or accrual accounting? This question gets asked almost as much as “paper or plastic?” and “debit or ...

Small businesses may have losses in the first year or two of operations because it takes time to establish a market presence and generate enough revenues to cover costs. A loss does not necessarily ...

Learn what book balance is, how it differs from bank balance, and see practical examples. Understand how reconciling these balances is crucial for cash flow management.

F or many years, the IRS clashed over the cash method of accounting with small business taxpayers who provided services as the mainstay of their business but who were categorized as inventory ...

Learn how to calculate and interpret the cash flow-to-debt ratio to assess a company's ability to manage debt effectively. Includes formulas and real-world examples.

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 ...

The October A&A Focus webcast also examined considerations of using a cash-basis accounting method and considerations for ...