Accrual, in almost every case. It shows a truer picture of the business, it is the GAAP standard investors expect, and it makes forecasting possible. You also have to move to it once revenue crosses 25 million dollars.
Cash basis is defensible with very little activity. The IRS does not allow a mid-year switch, so decide before the year starts. We compare the two.
Inkle Books closes and reconciles your US books every month.
