Cash vs. Accrual Accounting – Which One is Right for You

When setting up a new business you are faced with a wide variety of decisions. One such decision is how you will be keeping your books. Deciding if you should keep a cash accounting system, or an accrual accounting system depends a great deal on what type of business you run. In order to choose the best method you must take into consideration the current size of your business, your plans for the future, and if third parties (such as shareholders, or lenders) will be involved. This being said, you may still be left wondering which system is right for you. [Read more…]