kassaperuste
Kassaperuste, or cash basis, is an accounting method in which income is recognized when cash is received and expenses are recognized when cash is paid. It contrasts with accrual accounting, where revenue is recognized when earned and expenses when incurred, regardless of cash movements. The method is commonly used by small businesses, sole traders, freelancers, and some nonprofit organizations because of its simplicity and direct reflection of cash flow.
Key characteristics include recording only actual cash transactions, with minimal use of accounts receivable or payable.
Usage and regulatory context vary by country. In many jurisdictions kassaperuste is permitted for small businesses
Advantages of kassaperuste include simplicity, a direct link to actual cash flow, and potentially smoother tax