Cash accounting is an accounting method where transactions are recorded only when cash is received or paid. This system differs significantly from accrual accounting, which records transactions when they are earned or incurred. Cash accounting provides a simplified approach to managing VAT liabilities for eligible businesses.
Cash-flow accounting is an accounting method that focuses on the inflows and outflows of cash within a business, providing a clear picture of the company's liquidity.
Hybrid Accounting Methods are those accounting practices that incorporate elements from both cash and accrual accounting methods to better reflect a taxpayer's income. Used when authorized by the Treasury Regulations, and if consistently applied.
