How to Choose the Best Accounting Method for Your Company
Accounting can be intimidating when you're just starting out, especially if you're not an accountant. And depending on your industry, the way you manage accounting may differ. So, what are the different accounting procedures, and how can you decide which one to utilise for your company's bookkeeping? Accounting Techniques Single-entry and double-entry accounting are the two types of accounting available. There are three types of accounting methods: accrual, cash, and modified cash basis. Let's go over the basics first before discussing which types of organisations employ certain accounting procedures. In your accounting software or books, each transaction is recorded as a separate entry. The single-entry method is used in cash-basis accounting (which we'll get to in a minute).Cash disbursements and receipts are typically recorded using the single-entry approach. All incoming and outgoing funds are recorded in the cash book if you utilise single-entry accounti...