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Cash vs. Accrual Accounting

inDinero Accounting

However, deciding between cash vs. accrual accounting methods is a critical one that will have far-reaching implications. Your choice between accrual vs cash will affect your business in several ways. Second, it will modify the timing of your tax liability for earnings and when you can declare expenses.

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Unlocking the Language of Accounting: Understanding Common Terms

SMBAccountant

Cash vs. Accrual Accounting Cash accounting records transactions only when cash changes hands, providing a real-time view of cash flow. However, it may distort long-term financial health. Book Accounting and Tax Accounting Small businesses may notice differences between book accounting and tax accounting.

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ARE ALL ACCOUNTING SERVICES THE SAME?

Basis 365

Although very highly trained, they tend to bill by the hour, discouraging you from speaking to them to avoid surprise invoices and tend to only handle the books for their customers to keep their tax professionals busy. Come tax season, you'll find it hard to get in contact with them regarding your books. WHO CAN ADVISE YOUR BUSINESS?