Cash vs. Accrual Accounting
As if accounting wasn't already complicated enough, did you know there is more than one way to keep track of and report all of your business transactions? That's right, you get to choose between cash basis and accrual accounting. The difference between the two is actually pretty simple: Cash basis taxpayers record transactions when cash changes hands, while accrual taxpayers record transactions when work is performed. While this might seem like a minor difference, it could have a pretty big impact on your financial results.