top of page

Why Accrual-Basis Books?

  • Writer: Abby June Richards
    Abby June Richards
  • Oct 24, 2023
  • 1 min read

Using the accrual basis helps your financials tell a logical story.

"Cash basis" is easier, but the story won't make sense.

Like the Big Bad Wolf eating Red Riding Hood on the first page.


An investor won't understand your story.


They won't see your bright future clearly.


If you buy inventory in March, and sold it in April & May -

Don't show COGS in March -

That's not when you used it!


If you ship in March and April, but receive the cash in May -

Don't show the revenue in May -

That's not when you earned it!


A good bookkeeper can use the accrual method

and will understand why you need it.

 
 
 

Recent Posts

See All
Taking the Leap: When to Go All-In

When a startup idea is buzzing around your brain, it can keep you up at night, fuel your conversations, and whisper sweet nothings of...

 
 
 
Choosing NetSuite

NetSuite was my bread and butter for a good bit of my time in consulting, but I don't talk about it much these days, because my clients...

 
 
 

Comments


Know Your Numbers and Win the CASH FIGHT

TM

The CPG CFO, LLC is not a CPA firm.
Services provided are advisory in nature and do not constitute legal or investment advice.

©2026 by The CPG CFO, LLC.
201 E Methvin St, Unit 1253, Longview, TX, 75606

Privacy Policy | Terms of Service | Cookies Policy

  • The CPG CFO on Instagram
  • Abby June Richards, The CPG CFO on LinkedIn
  • The CPG CFO on YouTube
bottom of page