Pro Tip: Accrual Basis Financial Recording

Most clients come to us using cash basis financial recording, this is a part of the reason why they also often come to us lacking clarity on their financial performance. We strongly encourage (but do not require) a shift to accrual basis financial recording for a few reasons:

1. It gives more meaning to fluctuations in Gross Margin

2. It spreads out periodic payments for OPEX items so that the value of those items is evenly accounted for in the month it is used by the business

3. It eliminates profit fluctuations related to payment timing overall

Making this change can seem daunting, we can help!

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