Accounts Receivable vs. Payable on a Cash-Basis Balance Sheet

You keep your books based on the accrual method for reporting income and expenses, and you prepare your taxes on a cash basis. Accounts receivable and accounts payable appear on your balance sheet both ways, even though they should not appear on a cash basis. We will identify why they occur and suggest a few solutions to address them.

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Kelly Gonsalves
Financial Terms All Business Owners Should Understand

Owning a business can be overwhelming, and so is knowing that you have to be on top of your finances to succeed and survive. Unfortunately, not all entrepreneurs are fond of numbers. That is why accountants and bookkeepers exist to help. Still, that does not mean business owners should wholly rely on them for everything. It is still their business, and they need to know the ins and outs of their finances.

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Kelly Gonsalves