Cash vs Accrual accounting methods

Confused about accounting methods? Here’s a quick breakdown:

• Cash Basis: Track income when payments are received, not when the work is done. Remember, if you haven’t received payment by the end of the financial year, it doesn’t count towards your income yet. Be sure to reconcile any unpresented cheques when you file your tax return.

• Accruals Basis: Record all income earned for work done within the financial year, regardless of whether you’ve been paid.

Keep your records straight by sticking to one method throughout the year. For more personalized advice, our expert team is here to help!