Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What types of businesses use cash-basis accounting?

April 26, 2017Accounting Administration Business businesses cash-basis types

0

Posted

What types of businesses use cash-basis accounting?

1 Answer

0

Posted

Any sized service business is allowed to use cash-basis accounting and they often do. Also, small non-profit organization, proprietorship, corporation, partnership or limited liability company could also use cash basis if they wish. Companies that sell merchandise or manufacture products have inventory and therefore the IRS requires that they use accrual basis.