Discover when businesses must use accrual accounting and how it differs from cash accounting. Learn why it's essential for inventory and credit sales.

Accrual accounting is one of the primary accounting methods and is based on the matching principle, which dictates that revenues and their associated expenses be recorded in the same accounting period ...

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

F or many years, the IRS clashed over the cash method of accounting with small business taxpayers who provided services as the mainstay of their business but who were categorized as inventory ...

Editor’s Note: The 2017 tax reform legislation expanded the gross receipts test discussed below to include entities with annual gross receipts that do not exceed $25 million in 2018, $26 million in ...

An accountant can add financial balance to your life. But how do you pick the right accountant for your business? Here are ...

Find out what to include in a cash flow statement, as well as its limitations and how cash flow is calculated.