Csa Compensation Accrual Fund 2017-2024 Form

Instructions and help about THE CSA COMPENSATION ACCRUAL FUND

Today we're going to cover another topic that's often a reason for confusion: Cash and Accrual accounting. Two very different accounting methods. In this video we're going to take a look at both and see how each one could affect a business in different ways. We'll also see why income and cash can be two very different things. Lots to cover, let's get started. (uplifting music) The difference between these two concepts is in the timing of when revenue and expenses are recorded in your accounts. So just to be clear, over time both systems will get to the same results, but at a certain point in time there may be differences. And that's something that's important to understand, especially when it comes to analysis of financial statements. Let's start with the easier part, cash accounting. Cash-based accounting is a very intuitive system. It recognizes transactions only when cash is actually exchanged. So revenue is reported on the income statement only when cash is received, and expenses a