0Difference Between Cash Basis and Accrual Basis System
| Basis | Cash Basis System | Accrual Basis System |
|---|---|---|
| Recording | Recorded on cash receipt/payment | Recorded when transaction occurs |
| Outstanding Items | Not recorded | Recorded |
| Profit Calculation | Less accurate | More accurate |
| Suitable For | Small businesses | Large businesses |
| Complexity | Simple | Complicated |
| Financial Position | Not fully correct | More correct and complete |
