™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Cash Basis means. If we can be of more help explaining what Cash Basis is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657(888-55Books)™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Cash Basis means:

There are two basic recording methods that bookkeepers will use in accounting: Cash-Basis and Accrual Method.

In cash basis accounting, revenues and expenses are recorded only when there is a cash transaction, not when the sale or purchase actually occurs. This method is used for personal income taxes, some small business income taxes, and basic corporate accounting.

Since timing of payments and receipts can vary greatly, income statements based on cash-basis accounting can, potentially, contain spurious variations. These fluctuations could make period-to-period comparison difficult or impossible. As a result, most bookkeepers recommend the GAAP accrual method of accounting.

Need more information or help? Don’t hesitate to give us a call right now at 888-55Books.

All initial consultations are free. Call a Helpful Human today!”[Back to Accounting Terms]