What pros and cons of cash flow reporting versus accrual income reporting?© BrainMass Inc. brainmass.com April 3, 2020, 3:13 pm ad1c9bdddf
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.