Answer:
There are two accounting methods for calculating income: the accrual basis and the cash basis. Many sole proprietors and individuals who are self-employed by IRS standards use the cash basis because it is the easiest method to account for business income and expenses. Under the cash method, revenue is recorded when it is received, and expenses are recorded when they are paid. In many cases, a cash-basis method also synchronizes with a well-kept bank register.
