Editor’s Note: Under the 2017 tax reform legislation, if the taxpayer uses the accrual method of accounting, the “all events test” with respect to any item of income is not treated as met any later ...

Most businesses handle their accounting on an accrual basis. What is accrual basis accounting? It’s the practice of recording transactions at the point of origination, even if no money changes hands ...

The type of accounting method a company chooses will determine how it will record and keep track of finances. According to Entrepreneur.com, the two most basic accounting methods are cash and accrual ...

Learn how accruals function in finance, the difference between accrued revenue and expenses, and why accrual accounting is crucial for financial accuracy.

A prepaid asset is an expenditure of money in advance of when the money is due. For example, you might pay up front for a year's rent or insurance, even though the payments are due monthly. Under ...

Should small businesses use cash or accrual accounting? This question gets asked almost as much as “paper or plastic?” and “debit or credit?” While the IRS requires some companies to use accrual ...

Accrual accounting allows a business to record revenue before cash is collected. Investigate changes in accounts receivable on the cash flow statement to evaluate real cash status. Monitor allowance ...

Learn what every business owner needs to know about financial accounting, accounting software and financial statements.

In the U.S., there are accounting standards known as Generally Accepted Accounting Principles (GAAP). They are the accounting standards used for all businesses in this country and provide principles ...

Nearly two-thirds of governments worldwide are expected to report on an accrual basis within the next five years, even though only about one-quarter of them do now, according to a new report from the ...

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...