Distinguish cash-basis timing from accrual-basis cutoff decisions.
A correct date can still create a wrong month. Cash basis Cash basis follows receipts and payments. It is useful for simplicity and cash visibility, but it can distort performance when bills or invoices lag the work. Accrual basis Accrual basis follows earned revenue and incurred expense. It requires more judgment, but it better matches work, revenue, and cost in the same period. Cutoff discipline At close, do not move dates to make reports look nicer. Identify the underlying event, apply the chosen method consistently, and document the adjustment when the accounting period differs from the cash date.
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