Bookkeeper Question: Download Bookkeeper PDF
What do you think accrual or cash basis reporting is better for business management?
Answer:
Look for an advanced bookkeeper to explain that accrual basis accounting provides better financial reports, but cash basis is usually preferred for taxes. We can keep the books on accrual basis for management reporting and the tax accountant can make adjustments for cash basis taxes. A standard bookkeeper will probably tell you what her experience has been and will not have a preference for either.
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