Accounting glossary
What is cash basis accounting?
Recording income when cash arrives and expenses when cash leaves. Simpler than accrual, and fine for very small unincorporated operations — but it hides receivables and payables, which is precisely the information a growing business needs.
Example
You invoice $10,000 in March and are paid in April. Cash basis records $10,000 of April income; accrual records it in March.
The practical consequence: a cash-basis P&L can show a wonderful April and a terrible March for a business whose actual trading was identical in both.
In SeroBooks
SeroBooks keeps accrual books; cash visibility comes from the Cash Flow statement beside them. Cash vs accrual guide →