The Financial Statements—What are They?

Think of the financial statements as scorecards that collect the performance data of your company and report it to the owners (shareholders), managers and the government. There are three of them—the Balance Sheet, Income Statement […]

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Accrual Accounting

The need for accrual accounting arose because business has changed in the modern world. Go back several hundred years and we find that business transactions were conducted by barter or cash. In other words, each […]

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Cash Method Accounting

Cash method accounting is the alternative to accrual accounting. In accrual accounting, everything is recognized as the event happens, regardless of when cash is exchanged. The difference in cash method accounting is that everything is […]

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Revenue Recognition

When can a company recognize revenue? This question is often confusing for owners and managers of small to medium size businesses.  Revenue recognition differs depending on the nature of your business and whether you are […]

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