Why would I choose cash basis accounting versus accrual accounting for this business? What are the pros and cons to each one for your new business?

Discuss with your team Cash Basis Accounting and its impact on tax strategies. Your team is starting a new manufacturing business. Name your business and mention the product that you are producing. Include the following:

Why would I choose cash basis accounting versus accrual accounting for this business? What are the pros and cons to each one for your new business? How would choosing cash basis accounting versus accrual accounting impact the various tax strategies for your new organization? Discuss the pros and cons for your organization. Give an example of an organization or industry that uses cash basis accounting


 

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