14. Cash vs accrual accounting

Speakers

• Speaker 1 0:12
• Speaker 2 2:24

1. 0:12

   Chapter 1: Don't let the title of this coaching video scare you off. 131s · Speaker 1

   Don't let the title of this coaching video scare you off. This is a critical and massively misunderstood topic. If you decide to skip it, ask yourself if you're truly serious about mastering your business optics. Without the correct account…

2. 2:24

   Chapter 2: Cash accounting records only those transactions in which actual cash changes hands. 312s · Speaker 2

   Cash accounting records only those transactions in which actual cash changes hands. If it doesn't involve cash, cash accounting ignores the transaction until the cash is actually deposited or paid out. To my knowledge, there's only one busi…

3. 7:36

   Chapter 3: Didn't it partially occur every month for the last 12 months? 97s · Speaker 1

   Didn't it partially occur every month for the last 12 months? Accrual accounting would tell you to record one twelfth of the $12,000, which is $1,000 a month, every month as an expense. Cash accounting would tell you to only record it as an…

4. 9:14

   Chapter 4: Most business owners don't understand the concept of earnings as a theory and that profits can't be spent. 298s · Speaker 2

   Most business owners don't understand the concept of earnings as a theory and that profits can't be spent. They think that if there's a dollar sign or a pound sign or a euro sign in front of a number, it must be cash. It's not. Bizarrely, b…