Cash Basis vs. Accrual Basis: What’s the Difference?
CFO Simplified
SEPTEMBER 11, 2022
Here, you’d have a huge amount of profit all at once. However, if you paid to cover all those past due payments, you would register a HUGE loss in that month because of the high amount of cash going out of your business. That net is how much of a profit or loss you had for that month.
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