Discover how accruals affect company finances, with insights into the accrual accounting method, its applications, and examples illustrating its principles.

Learn what a compensating balance is, how it can affect loan terms, its role in business borrowing, plus key examples and accounting rules.

There are two main types of business accounting methods: cash and accrual. In general, small-business owners have the option to choose which one to use. Both methods function to keep track of income ...

Many businesses prefer the simplicity of using cash basis accounting. An expense is recorded when cash is paid and income is recorded when cash is received. However, Generally Accepted Accounting ...

Opinions expressed by Entrepreneur contributors are their own. Should small businesses use cash or accrual accounting? This question gets asked almost as much as “paper or plastic?” and “debit or ...

Financial accounting is the process of recording and reporting your business’s income, expenses, assets and liabilities, often with the help of software. This information gives managers, owners and ...

Find out what to include in a cash flow statement, as well as its limitations and how cash flow is calculated.