Practice in a perfect area grossing $270K, averaging 300 patients per month doing sx 0%, c&c 20%, sports 10%, orth. 25%, Diabetic care 20%, wound care 10% and laser 12%. Cash 24%, Medicare 26% and Blue Cross 13%. New listing. Call 610-518-7411 for full details.
On the other hand, the accrual method accounts for revenue when it is earned and expenses goods and services when they are incurred. The revenue is recorded even if cash has not been recieved or if expenses have been incurred but no cash has been paid. Accrual accounting is the most common method used by businesses. For example: Let's say you own a business that sells machinery. If you sell $5,000 worth of machinery, under the cash method, that amount is not recorded in the books until the customer hands you the money or you receive the check.
For these entities, determining whether to use the cash or the accrual method is based on two issues: the material income-producing factor test and the type of entity. Generally companies that sell merchandise must use the accrual method for purchases and sales.