What is the Definition of Cash Basis Accounting?
Cash Basis Accounting
Cash basis accounting refers to a major accounting method that recognizes revenues and expenses at the time cash is received or paid out. Accountants using this method record financial transactions as soon as invoices are paid or cash is deposited. Because cash basis accounting records transactions only at the point cash is exchanged, this is often viewed as a less accurate method of accounting. However, small organizations that do not carry inventory might use this method, as it provides a picture of cash available on hand and is generally a simpler and less expensive method of accounting. Cash basis accounting is in contrast to accrual basis accounting.
NEXTSTEPS | 11.16.20
Related Blog Posts
Checklist for Processing 1099’s and W2s
Checklist for Processing 1099’s and W2’sEnd of Year Payroll Tax Forms: W2, 1099 Some of the most important payroll tax forms -- W2 and 1099 forms -- must be mailed out to your employees and contractors shortly after the calendar year ends. Any contractors who were...
5 Ways That You Can Benefit From Fiscal Sponsorship
5 Ways That You Can Benefit From Fiscal SponsorshipFiscal Sponsorship Has Both Financial and Administrative Benefits Fiscal Sponsorship has many financial and administrative benefits. Fiscal sponsorship refers to the practice of non-profit organizations...
Paycheck Protection Flexibility Act Adds Key Features to Existing Payroll Protection Program (PPP)
Paycheck Protection Flexibility Act Adds Key Features to Existing Payroll Protection Program (PPP) New Law Improves Provisions for PPP Loan Forgiveness PPP Applications Accepted until June 30 The Paycheck Protection Program (PPP), provides short term loans to small...
Additional Funding Available for the Payroll Protection Program (PPP)
Now that Congress has supplemented the first round of funding, those who haven’t yet applied for PPP funds should do so soon, in order to get in line for the loans.
SBA Economic Injury Disaster Loan
SBA Economic Injury Disaster LoanCARES Act Expands Economic Injury Disaster Loan Program Pentacle remains dedicated to continuing to provide a high level of support to artists during these extraordinary circumstances. Alongside many other key and respected...
Investing during COVID-19 FAQ
Investing during COVID-19 FAQ Tips for Maintaing Good Financial Health as an Artist A market downturn might feel like a strange time to be thinking about your investments, but there are critical steps you can take to maintaining good financial health as an artist with...
Pentacle’s nextSteps is supported, in part, by public funds from the National Endowment for the Arts, the New York State Council on the Arts with the support of Governor Andrew M. Cuomo and the New York State Legislature, and the New York City Department of Cultural Affairs in partnership with the City Council. Pentacle receives private support for nextSteps from the Rockefeller Brothers Fund and The Howard Gilman Foundation.
