What pros and cons of cash flow reporting versus accrual income reporting?
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.