Category: Bookkeeping

The cash basis or cash method is an alternative way to record expenses. Accrued liabilities are entered into the financial records during one period and are typically reversed in the next when paid. This allows for the actual expense to be recorded at the accurate dollar amount when payment is made in full. How to…

So, if the sales of a construction business surpass the said amount, accountants have to use another method for tax purposes. One positive aspect of the cash method is that it provides an accurate representation bookkeeping for contractors of cash flow. As a result, this leads to accountants not having to keep tabs on what…