Cash vs. Accrual Methods of Accounting Every organization has a method in which they collect and keep track of the organization�s income and expenditures, which are later transferred into a statement where internal and external clients can view the organization�s financial position. There are two principal methods that are used, the cash method and the accrual method, which are also known as cash basis and accrual basis. The main difference between both methods is based on the timing of when transactions are posted, then credited and debited into the accounts. The cash accounting method is considered the easier method because transactions are not posted into the accounts until cash is received, and expenses are not considered until they are paid. For example, the business acquires a light bill in August but is not due and paid until September. Under the cash method, the payment would be recorded in September when it was actually paid. Another example would be if your business provides a service in February but does not get paid until April. With this method would record the trans......

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