Cash vs Accrual Accounting

Cash vs Accrual Accounting Cash basis accounting is simple and logical, but only appropriate for very small businesses and sole proprietorships Accrual basis accounting is more complicated, but also more accurate and informative. It is highly recommended for any company that is raising capital from investors (debt or equity) Accrual accounting is required by the IRS once you cross $25M in annual gross receipts (revenue plus interest income). Until that point, founders and investors are allowed to choose the accounting methodology they prefer Visit our website www.opstart.co