kontantbaserte

Kontantbaserte is a Norwegian term used to describe systems, policies or practices that rely on cash transactions. In everyday use, it appears in phrases like kontantbasert regnskap and kontantbaserte betalinger, referring to approaches that prioritize actual cash movements over other considerations.

In accounting, kontantbasert (or kontantprinsippet) means recognizing revenue when cash is received and expenses when cash is paid. This contrasts with accrual-based accounting, where income and costs are recorded when earned or incurred, regardless of when cash changes hands. The kontantbaserte approach offers a simpler view of liquidity but may distort profitability or hide obligations that will affect future cash flow.

Kontantbaserte systems are often considered suitable for small businesses, sole proprietorships or organizations with straightforward cash flows, where administrative simplicity is valued. They can also be chosen for regulatory or taxation reasons in some jurisdictions. However, larger businesses typically use accrual-based methods because they provide a more accurate picture of financial performance and obligations over time.

The term can also apply more broadly to policies or processes that depend on cash settlements rather than credit terms, such as kontantbaserte betalinger in procurement, compensation schemes or project funding. In practice, whether a context is described as kontantbasert depends on the emphasis on actual cash movements as the timing mechanism for recognizing economic activity.