[header] How to decide between cash and accrual accounting for your business [title] Differentiate between the cash and accrual accounting methods for your business. [step] You need not have great accounting or business acumen, but you most definitely need to have an understanding of each system in order to make a decision that is right for you. Some business models are not even possible for one method versus the other. 
[substeps] In cash-basis accounting, you will record expenses in your ledger when you actually hand over your cash to the vendor. Conversely, when you record revenue in your financial sheets is when you actually get cash into your pocket.