Cash vs. Accrual Method Comparison

The accounting method you choose determines when income and expenses are recognized — and therefore how much tax you owe this year. Enter your actual cash flow plus pending items to see how each method changes your taxable income, and which approach saves you more money given your situation.

Cash Collected & Paid This Year

Cash Received from Customers ($)

Cash Paid for Expenses ($)

Pending (Not Yet Received/Paid)

Outstanding Invoices (A/R) ($)

Unpaid Vendor Bills (A/P) ($)

Prepaid Revenue (deposits received) ($)

Prepaid Expenses (paid, not used) ($)

Tax Rate (%) for comparison

Cash Basis

Revenue

Expenses

Net Income

Est. Tax

Accrual Basis

Revenue

Expenses

Net Income

Est. Tax