"Do you need to restructure
your business in order to
maximise its potential?"
"4 convenient office
locations - you come to
us or we come to you."
"Save time and money by
having one firm for all your
legal and accounting needs."
"We can help you on
the path to achieving
your business goals."
"Giving our clients the
best integrated legal and
Cash Basis of Accounting
Under the cash basis of accounting, revenues are recorded in the period in which cash is received, not the period in which the goods have been sold or services provided. Similarly, expenses are recorded in the period in which the cash is paid, not the period in which the expenses have been incurred.
Under the cash basis of accounting, the net profit of the business is determined as the difference between cash inflows from revenues and cash outflows from expenses during the reporting period. Bookkeepers who enter transactions into the accounting systems from deposit slips, cheque butts and from the bank statement are using the cash basis of accounting.
Accrual Basis of Accounting
Under the accrual basis of accounting, revenues are recorded in the period in which the goods are sold or the period in which the services are provided. This may or may not be the same accounting period in which the cash is received. In other words, under accrual accounting concepts, revenue is recognised in the period in which it is derived, not in the period in which the cash has been received.
Similarly, expenses are recorded in the period in which they are incurred or consumed, rather than in the period in which the cash is paid.
Under the accrual basis of accounting, the net profit of the business is determined as the difference between the amount of revenue derived during the reporting period and the amount of the expenses incurred during the same period.
Our dedicated team can assist you with any queries you may have about cash or accrual accounting, as well as assist you with all your Bookkeeping needs. Complete and submit the Express Enquiry form on the top right hand side of this page and we will contact you to discuss your enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.
© The Quinn Group Australia Pty Ltd ABN 86 078 526 860
The Quinn Group operates Quinn Consultants, Quinn Lawyers, Quinn Financial Planning and Quinn Financial Solutions. The Quinn Group provides related information in regard to legal, accounting and financial planning issues. Liability limited by a scheme approved under Professional Standards Legislation* *other than for the acts or omissions of financial services licensees.