Cash vs. Accrual Accounting 101: Why YOU should care

April 01, 2022
by a professional from Harvard University - Harvard Business School in Atlanta, GA, USA
If you've ever wanted a crash course on cash vs. accrual accounting and why you should care - check out my new War Stories blog post that addresses how it played a role on a real deal.
https://www.guardianduediligence.com/blog/aquisition-war-story-what-accounting-reveals
from The University of Chicago in Chicago, IL, USA
1) In addition to Cash, accrual, and cash + accrual, there is pre-recording and not-recording.
2) Your "proof of cash" is a powerful tool. In addition, I look at "Delta Analysis" on a yearly and monthly often helps, minimum 5 years, and detail equity account analysis.
3) Small businesses do not have GAAP financials. And GAAP and/or audited financials are not a security blanket by any stretch of imagination.
4) Good reps and warranties can help flush out intentional financial tricks and protect the buyer against oversights.
Thanks for sharing.
from California State University, Sacramento in Seattle, WA, USA