What pros and cons of cash flow reporting versus accrual income reporting?© BrainMass Inc. brainmass.com September 24, 2018, 9:49 am ad1c9bdddf - https://brainmass.com/business/accounting/net-income-versus-operating-cash-flow-62777
Please see response attached (part of which is posted below).
Briefly, for accounting purposes, the best method regardless of the type of business (except possibly a doctor) is the accrual-based method.
Cash-based accounting can distort the true operations of your business and incorrectly reflect income. Cash-based accounting recognizes income when money is received. Accrual-based ...
This solution discusses the pros and cons of cash flow reporting versus accrual income reporting.