Hey! Have you been avoiding learning the difference between the cash and accrual methods of accounting?...  Emily and Michelle dive into this confusing topic and come to find out that they aren’t as clueless as they thought!  There might not be a clear right or wrong method (spoiler: they each use a different method), but it’s good to know the benefits and downsides of both and to choose one and stick to it.

 

Articles cited:

www.amynorthardcpa.com/should-you-use-cash-or-accrual-accounting

 

www.blog.craftybase.com/2018/02/22/why-inventory-based-businesses-should-use-the-accrual-method

 

www.blog.craftybase.com/2017/01/26/why-claiming-your-materials-as-expenses-is-a-really-bad-idea-for-a-craft-business