Accrual vs. Cash Accounting: Why Does It Matter?

09/16/20 • 6 min

To make the best strategic decision for your accounting needs, you need to understand the differences between accrual and cash accounting and how your choice may affect how you file your taxes. While the biggest difference may be easy to understand — deciding when to recognize income and expenses — there are other nuances that need a bit more explaining.

So, in this episode, we discuss:

• The difference between cash accounting and accrual accounting.

• How each type of accounting recognizes revenue.

• Why choosing between the types of accounting matters to your business.

• Our preferred accounting strategy for your business.

Need more? Our team has put together a free resource library to save you valuable time and energy in your business!

Ready to get started with Quickbooks? Use our referral link.

If you're ready to outsource your Accounting and/or Tax prep needs go to www.littlefishaccounting.com

Find us online:

Instagram:www.instagram.com/littlefishaccounting
Facebook: www.facebook.com/littlefishacctg

Connect with Keila!
LinkedIn
www.krht.co

So, in this episode, we discuss:

• The difference between cash accounting and accrual accounting.

• How each type of accounting recognizes revenue.

• Why choosing between the types of accounting matters to your business.

• Our preferred accounting strategy for your business.

Need more? Our team has put together a free resource library to save you valuable time and energy in your business!

Ready to get started with Quickbooks? Use our referral link.

If you're ready to outsource your Accounting and/or Tax prep needs go to www.littlefishaccounting.com

Find us online:

Instagram:www.instagram.com/littlefishaccounting
Facebook: www.facebook.com/littlefishacctg

Connect with Keila!
LinkedIn
www.krht.co

Previous Episode

How Many People Are Affected When You Don’t Charge Enough?

If you’ve been tuning into our podcast for awhile or hanging out with us on Instagram, you’re not surprised when we say this: You should be charging more for your goods and services. Yes, you!

When you undercharge for your service or product, you’re not only sending a clear message to existing and potential clients and customers about your value, you’re also telling them how to perceive your worth as well. But this decision to undersell yourself doesn’t just affect you and your business, but others as well.

On this episode of the podcast, we talk about:

• How undercharging actually takes away from the growth of your business.

• The example you set for your team when you undervalue and undercharge.

• How resentment builds toward your clients, leading to unnecessary conflict.

• How the community suffers when you don’t have the resources or time to reinvest in it.

We know your value and we want you to know it, too. So, if you’ve been on the fence about raising your prices and nervous about how your clients and customers will respond, you’ll definitely want to tune into this episode.

Need more? Our team has put together a free resource library to save you valuable time and energy in your business!

Ready to get started with Quickbooks? Use our referral link.

If you're ready to outsource your Accounting and/or Tax prep needs go to www.littlefishaccounting.com

Find us online:

Instagram:www.instagram.com/littlefishaccounting
Facebook: www.facebook.com/littlefishacctg

Connect with Keila!
LinkedIn
www.krht.co

Next Episode

Discovering Your Passion

Contrary to popular opinion, Millennials aren't the only ones doing side work and following their dreams, Baby Boomers are emerging as entrepreneurial spirits as well!

This week, we get to hear from Generation X firsthand through a reluctant representative -- my mom. As a Program Analyst for the CDC she has a deep passion for African American genealogy research and shares:

• Her experience discovering her passion

• How to create opportunities to monetize it

• The sometimes harsh realities that come with balancing full-time work and your passion project, plus more!

I truly believe that our ancestors are calling out for their stories to be told. They lived through a time where they couldn’t speak for themselves, so we are in a unique position to speak for them by both knowing and sharing their stories.

Need more? Our team has put together a free resource library to save you valuable time and energy in your business!

Ready to get started with Quickbooks? Use our referral link.

If you're ready to outsource your Accounting and/or Tax prep needs go to www.littlefishaccounting.com

Find us online: