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> reflect the reality of your company Accounting is an exercise in standardization and communication. Like a network protocol you want different parts speaking
by Havoc 1y ago
> reflect the reality of your company
Accounting is an exercise in standardization and communication. Like a network protocol you want different parts speaking the same language even if it requires some constraints and abstractions
The info you describe is something you’d have FP&A/MI team do. There you can do whatever the team thinks is best to capture things in a unique manner
Mixing the two is generally a recipe for disaster (and IRS audits)
- thaumasiotes 1y agoWhat? This is just the difference between cash accounting and accrual accounting. Using cash accounting isn't going to get you audited, or even raise any eyebrows.