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.
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