Should my business be based on accrual or cash basis?
The difference between cash and accrual basis comes down to timing.
Cash Basis: You record transactions when you make the payment or receive cash.
Accrual Basis: You must record every transaction that takes place even if you have not paid or received money. There are two entries for each transaction in a double entry accounting.
If you are a small business entity (individual, partnership, trust or a company) with turnover less than $10 million you can use cash basis accounting.

Contact AIFA Accountants for more information.