Should I keep my books on a cash basis or an accrual basis?

The cash basis is simple: record revenue when collected, expenses when paid. The problem is it can mislead — a month where you collected large payments from old clients can look highly profitable even if the actual work was weak, and the reverse is just as true.

The accrual basis (what IFRS requires, and what most Corporate Tax purposes rely on) records revenue when earned and expenses when incurred, regardless of cash timing. Very small businesses under the Small Business Relief revenue threshold may be allowed a simplified cash basis in specific cases — but that needs a review of your actual situation, not a blanket assumption. RASEEKH determines the right basis for your file from day one, so decisions built on your numbers reflect reality.