Cash vs accrual accounting might sound like the most boring finance term in the world—but it’s one of the most important decisions you’ll ever make for your business.
In this episode of Creative Minds Smart Money, I break down the difference between cash basis and accrual basis accounting using plain language and real-world examples. From why your P&L sometimes says you lost money even after a big sale, to how unpaid invoices or prepaid retainers can distort your numbers, this episode will finally clear up the confusion.
Whether you’re a service provider working with deposits, a product-based business with inventory, or just someone who wants to actually trust their reports, this conversation will help you decide what’s right for your stage of business.
In this episode, we cover:
✅ What cash basis really means (and why it’s simpler for early-stage businesses)
✅ What accrual basis really means (and why it gives you a clearer performance picture)
✅ The pros and cons of each method
✅ How your choice impacts taxes, forecasting, and decision-making
✅ When you might be required to use accrual, especially if you sell products or carry inventory
✅ My recommendations as a CFO for when to use cash, when to switch to accrual, and why one isn’t “better” than the other—it’s about what you need from your numbers
If you’ve ever wondered “Why do my reports look wrong?” or “Am I using the right accounting method?”—this episode will finally give you clarity.
🎧 Hit play now and learn how to choose the method that fits your business, your goals, and your stage of growth.
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📢 If this episode helped you understand your numbers better, share it with a friend, leave a review, and help more creatives make confident money moves.
