As a business owner, you have to make important decisions daily. One thing you need to decide when you start your business is an accounting method. Methods you can choose from include cash-basis, modified cash-basis, and accrual accounting.
The two methods that differ the most are cash-basis and accrual accounting. To help determine which method is best for your business, weigh the pros and cons of accrual vs. cash-basis accounting. And, review accounting laws to ensure you stay compliant.