Cash method of accounting

Discussion in 'Accounting and Legal Advice' started by gregriv69, Dec 12, 2006.

  1. gregriv69

    gregriv69 New Member

    When you use the cash method of accounting, you count income or expenses at the time you actually receive a payment or pay a bill. A cash-basis report shows income only if you have received it, and expenses only if you have paid them. This method is used by most sole proprietors and other self-employed individuals with no inventory.
     

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