
Cash Vs Accrual - Are you confused already?
Did you even realise that there are two ways to run a profit and loss report and how you do so could drastically affect the figures? So what is cash vs accrual? Reporting on a cash basis is literally reporting on the dollars that have physically gone in and out of your bank account. So in this instance only customer invoices that have actually been paid by the customer will be included as revenue, and only supplier bills that have actually been paid to the supplier will be in