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Download the Cash Accounting vs. Accrual Accounting Excel file:
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In this video I discuss which accounting method to use for a new company. The 2 methods are Cash Accounting and Accrual Accounting. We discuss some examples of financial transactions to illustrate the impact of the choice on the income statement.
Accrual Accounting is the method that's compliant with US GAAP (Generally Accepted Accounting Principles).
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