Showing posts with label accrual basis. Show all posts
Showing posts with label accrual basis. Show all posts

Thursday, June 12, 2014

Why would a company use the cash basis of accounting?



To my understanding, some organizations may use the cash basis of accounting when they cannot convert to GAAP due to costs. When filing their income taxes the organization may use the tax basis of accounting to save money for that organization. Political campaigns and committees would be an example of an organization that would use the cash basis of accounting.