Do u use cash accounting or accrual? Why?
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Accrual always, worth it in the long run.
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It matches the revenue with expenses when the revenue was earned and the expenses occurred. It is more complex than cash accounting but provides a much better summary of what is going on in the company.
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I disagree. You can have massive cash flows but revenue's low due to annual billing for recurring products.
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Accrual basis is consistent with GAAP standards. Basically, it provides a more accurate representation of the financials.
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