Glossary
Cash vs accrual basis
Cash basis records money when it moves in or out, while accrual basis records a sale or cost when it happens even if payment comes later.
What it means for a shop owner
A small shop selling for cash sees little difference, while one selling on credit sees a lot. Cash basis is simpler, accrual is truer for measuring performance. Pick one and do not switch every month.
A worked example
You sold 500 on credit at month end and were paid two weeks later. Accrual counts it in this month, cash basis counts it next month.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes