Скачать или смотреть 💰 Cash vs. Accrual accounting: which one shows your real profits?

Your accounting method might be lying to you about your profits.

Most small business owners start with cash accounting because it's simple. You record money when it hits your account and expenses when you pay them.

But here's what cash accounting doesn't show you:

The $20K in invoices waiting to be paid. The bills coming due next month. Whether you're actually profitable or just having a good cash flow week.

Accrual accounting changes that. You see income when it's earned and expenses when they're incurred, regardless of when money moves. This gives you the full financial picture of your business.

If you issue invoices, work on long-term projects, have recurring clients, or offer payment terms, accrual accounting helps you:
✅ See your true profitability
✅ Plan for upcoming expenses
✅ Avoid cash flow surprises
✅ Make smarter tax decisions

In 2025, businesses averaging over $31 million in gross receipts must use accrual. But even smaller businesses benefit from the clarity it provides.

Want to know which method fits your business? Comment "CASH" below and we'll help you figure out the best approach for your situation. 💰

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Not legal or tax advice