Question

When do you record revenue or expenses?

Answer 1

If you do it when you pay or receive money, it's cash basis accounting. If you do it when you get a bill or raise an invoice, it's accrual basis accounting. Accrual accounting is a far more powerful tool for managing a business, but cash accounting has its uses.

Answer 2

If you do it when you pay or receive money, it's cash basis accounting. If you do it when you get a bill or raise an invoice, it's accrual basis accounting. Accrual accounting is a far more powerful tool for managing a business, but cash accounting has its uses.