Accrual vs cash basis for tax returns: compare, when use each?
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Compare and contrast cash versus accrual accounting for the preparation of a tax return? Why would you use one over the other?
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Solution Summary
Your discussion is 180 words and compares the two methods and indicates when each may be used.
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Cash basis reports receipts and payments in the month that the cash went into or left your bank account. This is clean and crisp - either you got or paid the funds or you didn't. No guessing. No counting. Simple. It also ensures that you have cash to pay taxes!
Accrual ...
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