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The Difference Between Cash-basis and Accrual Basis of Accounting
An essential decision you will make for your organization/business is selecting the most suitable accounting method for your business because this will eventually direct everything from tax filings to financial reporting. The go-to bookkeeping method for most small businesses in their early stages is cash-basis accounting, while larger businesses use the accrual basis. Nonetheless, the motive for selecting a given accounting choice varies based on the business needs and size.