4 ms·
What you're describing is accrual accounting (accounts payable/receivable). It is one method of bookkeeping, but a lot of other businesses tend to use cash (wh
by candiddevmike 4y ago
What you're describing is accrual accounting (accounts payable/receivable). It is one method of bookkeeping, but a lot of other businesses tend to use cash (which deals in absolutes, you spent 5, you earned 5, etc).
- barking_biscuit 4y agoYou can model the data in such a way that the recorded transactions can be reported on in either accrual or cash basis.
- candiddevmike 4y agoNot sure what you mean, as far as I know the government requires businesses to pick one form and stick to it. Unless you're building accounting software you'd have no need to support both ways.
- EvanAnderson 4y agoIt’s common for US businesses to file taxes on cash basis but use accrual for managerial accounting.
- barking_biscuit 4y agoI build accounting software.