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Yes. A company must follow the right accounting methods when reporting revenue and expenses. Cash and accrual accounting are 2 main methods for businesses.

The current size and the legal structure of your business have a significant impact on the accounting method that bookkeepers ultimately choose. The cash method is typically used by small businesses because it is simpler and eliminates the need to track accounts receivable or payable. However, if you want a more accurate balance sheet, track retained earnings, or better manage your business expenses, you should use the accrual method.

See more: Bookkeeping service

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