accural accounting - services are provided In an accrual...

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Financial Management for Human Services Human Services Managers HSM/260 Gail Jones The difference between cash and accrual accounting is more like accounts receivable and accounts payable. Accounts payables and accounts receivables do not exist with non-profit human service agency. The cash basis for accounting is based on the money received and the amount of money that was spent. Accrual accounting is important because it provides a more accurate accounting of profit and loses. “Accrual basis accounting, income is reported in the fiscal period it is earned, regardless of when it was received.” Accrual accounting records the cost of services as soon the
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Unformatted text preview: services are provided. In an accrual system revenue does equal cash. The importance of the statement of cash flow in the financial management of an organization is because it is useful for planning financial operations in a more efficient way. Some companies may show were they are making a profit but the cash flow may be slow coming in or it may show very little or no cash flow. The statement cash flow can show where there was a profit and money was made during a certain period. The statement cash flow can also show any loses within the company....
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