►EXECUTIVE SUMMARY  1) IN 16 YEARS, I'VE NEVER SEEN PURE CASH OR PURE ACCRUAL — AND NEITHER WILL YOU: Every small business is a hybrid mess. If you don't know what you're looking at, you'll misread revenue timing, cost allocation, and ultimately what the business actually earns. Know which one you're dating before you put a ring on it. 2) NO AR AND NO AP ON THE BALANCE SHEET? YOU'RE DEALING WITH MR. CASH: Cash basis books record when money moves, not when it's earned. Income statements look like roller coasters. If you see smooth, consistent months — that's accrual. Volatile swings? Cash. Learn the tells or get played. 3) ASK THE SELLER TO WALK YOU THROUGH ONE INVOICE — THEIR ANSWER TELLS YOU EVERYTHING: If they can't describe how revenue flows through their financials, or the story changes mid-explanation, you're in "accrual-ish" territory — which is code for "nobody really knows." Add this filter before LOI or pay for it during diligence.