{"id":8073,"date":"2023-11-10T13:00:00","date_gmt":"2023-11-10T13:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=8073"},"modified":"2026-01-29T09:24:17","modified_gmt":"2026-01-29T09:24:17","slug":"cash-and-accrual-accounting","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/cash-and-accrual-accounting\/","title":{"rendered":"Cash basis and accrual accounting: What is the difference?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tCash basis and accrual accounting: What is the difference?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-11-10T13:00:00+00:00\">10 November, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Cash basis and accrual accounting: What is the difference?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/cash-and-accrual-accounting\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/keirthomasbryant\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2025\/06\/keir-short-hair.jpg 760w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Keir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>When most people start a small business,&nbsp;they suddenly find they need to learn accounting skills.<\/p>\n\n\n\n<p>This isn&#8217;t necessarily difficult, and there are two primary accounting methods: cash basis and accrual accounting.<\/p>\n\n\n\n<p>Read on to learn more about these vital areas of business admin.<\/p>\n\n\n\n<p>Here\u2019s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#cash\">Cash basis versus accrual accounting: An overview<\/a><\/li>\n\n\n\n<li><a href=\"#accrual-anchor-link\">What is accrual accounting?<\/a><\/li>\n\n\n\n<li><a href=\"#cash-anchor-link\">What is cash basis accounting?<\/a><\/li>\n\n\n\n<li><a href=\"#versus\">Accounting method: Cash basis or accrual?<\/a><\/li>\n\n\n\n<li><a href=\"#can-anchor-link\">Can you change from cash basis to accrual accounting?<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts on cash basis and accrual accounting<\/a><\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-fe91841c-f7c0-479d-8cc3-da3403a183e7\">Download your free copy of Master your money and discover what you need to know about doing the accounting and bookkeeping for your small business<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"cash\">Cash basis versus accrual accounting: An overview<\/h2>\n\n\n\n<p>The difference between cash basis and accrual accounting comes down to the time at which your expenses and income are officially recognised:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cash basis accounting<\/strong> (also known as cash-basis accounting) immediately recognises revenue income and cost as it occurs. This means recording inbound and outbound transactions as they happen.<\/li>\n\n\n\n<li><strong>Accrual accounting<\/strong> acknowledges income and expense in lieu of cash actually moving. An example of this is recording purchase orders and invoices.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Cash basis and accrual accounting each have their pros and cons.<\/p>\n\n\n\n<p>What&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/the-ultimate-guide-to-basic-business-accounting\/\">type of accounting<\/a>&nbsp;you choose could define the success of your business. For example, you get a better picture of your finances and also of any arising opportunities by using accrual accounting.<\/p>\n\n\n\n<p>But cash basis accounting is simpler, so will eat less of your time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"accrual-anchor-link\">What is accrual accounting?<\/h2>\n\n\n\n<p><strong>With accrual accounting, revenue is accounted for at the point when it\u2019s earned. Expenses are accounted for when they\u2019re incurred.<\/strong><\/p>\n\n\n\n<p>It doesn\u2019t matter if&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/save-money-small-business\/\">money<\/a>&nbsp;has actually changed hands or not. We just assume it will at some future date. And this is the key difference compared to cash basis accounting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Expense example for accrual accounting<\/h3>\n\n\n\n<p>Smith &amp; Co buys \u00a31,000 of raw materials from a supplier.<\/p>\n\n\n\n<p>At the end of the financial period, the finance team enters data for all the company&#8217;s purchases and use the date on the <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/invoice-cheat-sheet\/\">invoice<\/a> they received to record the \u00a31,000 expense in the accounts payable part of the <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/\">accounting software<\/a>.<\/p>\n\n\n\n<p>They do this even though they don&#8217;t expect to pay the \u00a31,000 for a month, as per the agreed terms.<\/p>\n\n\n\n<p>The \u00a31,000 debt is recorded as a liability in the company accounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Revenue example for accrual accounting<\/h3>\n\n\n\n<p>Smith &amp; Co uses the raw materials to create widgets, which it sells for \u00a33,000 to another company.<\/p>\n\n\n\n<p>The finance team issues an invoice for \u00a33,000 and uses the date of the invoice to account for the transaction in the accounts receivable part of the accounting software.<\/p>\n\n\n\n<p>This is even though they know the terms agreed with the customer are that they will not receive the \u00a33,000 payment until the next financial period (e.g. next month).<\/p>\n\n\n\n<p>The \u00a33,000 sale is recorded as an asset in the company accounts.<\/p>\n\n\n\n<p>If the managing director of Smith &amp; Co looks at her profit and loss statement, she will see the \u00a31,000 debt for the raw materials alongside the \u00a33,000 sale.<\/p>\n\n\n\n<p>Therefore, she can see at a glance how well her business is doing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages of accrual accounting<\/h3>\n\n\n\n<p>The main benefits of using accrual accounting are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You have a more accurate view of your company\u2019s financial standing, which allows you to forecast for the future and make strategic financial decisions.<\/li>\n\n\n\n<li>Your company&#8217;s financial profile won&#8217;t be unfairly judged against late payments or payment lag.<\/li>\n\n\n\n<li>A clearer depiction of a company&#8217;s financial state is more attractive to investors who could help your business grow.<\/li>\n\n\n\n<li>It\u2019s a GAAP compliant accounting system, which you will need to adopt if your business grows.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages of accrual accounting<\/h3>\n\n\n\n<p>The main disadvantages of using accrual accounting are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It can be notoriously difficult to change over from a cash basis to accrual system.<\/li>\n\n\n\n<li>Doesn\u2019t give you an accurate picture when it comes to cash flow.<\/li>\n\n\n\n<li>Slightly more complex to track because you aren\u2019t just tracking cash in and out. Accrual is more resource intensive since this system tracks accounts receivable and accounts payable.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#gate-fe91841c-f7c0-479d-8cc3-da3403a183e7\">Download your free copy of Master your money and discover what you need to know about doing the accounting and bookkeeping for your small business<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"cash-anchor-link\">What is cash basis accounting?<\/h2>\n\n\n\n<p><strong>With cash basis accounting, you only need to consider money at the time it comes into or goes out of your business\u2014when you get paid, or when you make a payment.<\/strong><\/p>\n\n\n\n<p>This can be confusing, so here\u2019s how to do cash basis accounting.<\/p>\n\n\n\n<p>Smith Decorators puts up some wallpaper for a client and sends an invoice. However, it doesn\u2019t receive payment for 30 days, as per its agreed credit terms.<\/p>\n\n\n\n<p>With cash basis accounting, the income for the work only enters its books when it actually gets that money via a bank transfer a month later.<\/p>\n\n\n\n<p>Similarly, Smith Decorators might receive an invoice for the wallpaper it bought.<\/p>\n\n\n\n<p>It only accounts for that invoice at the point it makes the payment\u2014when the money left its bank account via a debit card payment at the wholesaler, for example.<\/p>\n\n\n\n<p>That could be a month or two before it even uses the wallpaper at a client\u2019s premises.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages of cash basis accounting<\/h3>\n\n\n\n<p>A cash basis accounting system has many benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It&#8217;s straightforward to manage because you are tracking cash in, and cash out from a single-entry ledger.<\/li>\n\n\n\n<li>It gives a good indication as to how much money you have at any given moment.<\/li>\n\n\n\n<li>You can lower your tax liability by controlling the timing of expenses in relation to income since income is only taxable when you&#8217;ve received it.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages of cash basis accounting<\/h3>\n\n\n\n<p>While cash basis accounting is simple and easy to manage, it can come with some downsides:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cash basis accounting doesn\u2019t show business liabilities so in effect, there&#8217;s no way of telling how much of the cash that you currently hold can be spent.<\/li>\n\n\n\n<li>Not all businesses can use cash-based accounting especially if you sell services and products on credit.<\/li>\n\n\n\n<li>It&#8217;s difficult to understand a company&#8217;s financial potential because you can&#8217;t see the reasons behind profitability by just measuring cash as there is no context.<\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Tired of all those spreadsheets?<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Get started with flexible, HMRC-recognised Sage Accounting software you can access from anywhere.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/accounting\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-3738\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Explore Sage Accounting<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1215\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1058881454-1215x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1058881454-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"versus\"><strong>Accounting method: Cash basis or  accrual?<\/strong><\/h2>\n\n\n\n<p>Accrual accounting versus cash basis accounting\u2014which kind of accounting should your business use?<\/p>\n\n\n\n<p>The question might be answered by the size of your business. In the UK, you\u2019re&nbsp;<a href=\"https:\/\/www.gov.uk\/simpler-income-tax-cash-basis\/who-can-use-cash-basis\" target=\"_blank\" rel=\"noreferrer noopener\">only allowed to use cash basis accounting<\/a>&nbsp;if the following applies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>You\u2019re a sole trader or self-employed business (or partnership)<\/strong>. It can\u2019t be used by a&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/the-ultimate-guide-to-basic-business-accounting\/\">limited company<\/a>.<\/li>\n\n\n\n<li><strong>Your turnover is less than \u00a3150,000<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>Accountants are happy to explain why accrual accounting is better than cash basis, but are also happy to recommend the simpler cash basis accounting system for their clients\u2014especially&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/manage-your-accounts-sole-trader\/\">sole traders<\/a>, to whom admin work such accounting can sometimes be an afterthought.<\/p>\n\n\n\n<p>So, let\u2019s answer that question: why is accrual accounting better than cash basis accounting?<\/p>\n\n\n\n<p>Accrual accounting brings with it flexibility.<\/p>\n\n\n\n<p>For example, you can offset losses against previous years, or against other income. You can claim tax relief on bad debts (that is, debts that never get paid).<\/p>\n\n\n\n<p>And if your business holds lots of stock (if you\u2019re a retailer, for example) then accrual accounting is best because it\u2019s easier to account for such assets.<\/p>\n\n\n\n<p>It\u2019s also hard to get business financing if you\u2019re using cash basis accounting because it\u2019s difficult to see the financial health of the company.<\/p>\n\n\n\n<p>On the surface, cash basis accounting makes a lot of sense, especially if you\u2019re new to running a business.<\/p>\n\n\n\n<p>It\u2019s nice and simple.<\/p>\n\n\n\n<p>The cons are that it can be hard to match income to expenditure, so it can be tricky to see how well the business is actually doing.<\/p>\n\n\n\n<p>And there\u2019s no way to get a here-and-now view of sales versus expenditure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"can-anchor-link\">Can you change from cash basis to accrual accounting?<\/h2>\n\n\n\n<p>To use cash basis accounting, you need to tell HMRC on your&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/file-a-tax-return-online\/\">Self Assessment tax return<\/a>. If you don\u2019t, HMRC will assume you\u2019re using accrual accounting.<\/p>\n\n\n\n<p>If you\u2019re aiming for business growth, there will be a time when you will be required to adopt accrual accounting.<\/p>\n\n\n\n<p>Therefore, starting out as you mean to go on by adopting accrual accounting is probably best.<\/p>\n\n\n\n<p>But, yes, it\u2019s possible to switch from cash basis to accrual accounting.<\/p>\n\n\n\n<p>Converting from cash basis accounting to accrual accounting can be like changing the wheels on a car while it\u2019s still in motion. Nonetheless, many businesses do so every year out of necessity.<\/p>\n\n\n\n<p>The following tips might help:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Read up on accrual accounting so you fully understand what\u2019s required.<\/strong>&nbsp;There are many beginner guides and books available.<\/li>\n\n\n\n<li><strong>Read up on how to make the switch from cash basis to accrual accounting.<\/strong>&nbsp;The process is likely to involve a wholesale overview of your recent sales and purchases, as well as identifying things such as assets. Unless you\u2019re very brave, it\u2019ll probably be essential to get the help of a financial professional, such as an accountant.<\/li>\n\n\n\n<li><strong>Accounting software can help create the foundations for good accrual accounting.<\/strong>&nbsp;If you haven\u2019t yet started to use accounting software then the point at which you switch to accrual accounting is an excellent time to do so.<\/li>\n\n\n\n<li><strong>Switch at the right time.<\/strong>&nbsp;Because accrual accounting places much more importance around financial periods, it makes sense to make the switch during a natural break\u2014such as the tax year-end.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts on cash basis and accrual accounting<\/h2>\n\n\n\n<p>So now you know the difference between cash basis versus accrual accounting, it should be a bit clearer for you as to which accounting method you should use for your business.<\/p>\n\n\n\n<p>However, if you need further support, it\u2019s worth&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-choose-an-accountant-for-your-business\/\">speaking to an accountant<\/a>&nbsp;to determine which option is best for your business.<\/p>\n\n\n\n<p>Getting an expert view in this area can really help your business with the management of your accounts.<\/p>\n\n\n\n<p><em>Editor&#8217;s note: This article was first published in June 2021 and has been updated for relevance.<\/em><\/p>\n\n\n\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Master your money<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover what you need to know about doing the accounting and bookkeeping for your small business.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-fe91841c-f7c0-479d-8cc3-da3403a183e7\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1267191201_updated-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is cash basis accounting? How does it differ from accrual accounting? Discover the answers and learn the pros and cons of each method.<\/p>\n","protected":false},"author":280,"featured_media":11651,"menu_order":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[23,135],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,75],"imagine_tag":[109],"coauthors":[369],"class_list":["post-8073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-bookkeeping","tag-business-finances","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Keir Thomas-Bryant","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1280373749.jpg","imagine_tags":{"109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/280"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=8073"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/8073\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11651"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=8073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=8073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=8073"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=8073"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=8073"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=8073"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=8073"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=8073"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=8073"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=8073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}