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Cash Basis and Accrual Basis

There are 2 many types of recording accounting based on the time of recording the transaction:

Cash Basis and Accrual Basis

1.Cash Basis

Recorded Transaction happen when getting revenue cash /expenditure cash.

In this method revenue has not been recorded even though the goods / services have been given to customer.

Revenue will be recorded when the customer pays an amount of money to the company.

In this era this method rarely used, but usually use for new business or business where using payment method only cash, and also service like doctor.

2.Accrual Basis

Recorded Transaction happen when transaction happen, despite not receiving / expenditure cash.

In this method, recordings of revenue at the time of the sale, despite the cash has not been received and recordings of expense at the time of use.

This method more complex than cash basis, because if in cash basis there are only 2 elements revenue and capital, but in accrual basis besides revenue and capital there are liability, accounts receivable,and many more . This methode also more recognize by SAK.

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