Accrual Accounting: How it Works & Why it's #1!

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  • čas přidán 29. 06. 2024
  • 💥Cash vs Accrual Accounting Cheat Sheet → accountingstuff.com/shop
    🖊Cash vs Accrual Accounting Practice Questions → accountingstuff.com/practice-...
    Accounting Basics Lesson 8. In this episode of Accounting Basics for Beginners we take on the question - which is better? The Accrual Basis of Accounting or the Cash Basis?
    This episode of Accounting Stuff - Accounting Basics Lesson 8 - is a continuation of our series on Basic Accounting for Beginners. In this tutorial, you will learn:
    ▪ The definition of the Accruals Basis of Accounting.
    ▪ Accrual vs Cash Basis - Why is Accrual Accounting better than Cash Accounting?
    ▪ This will be demonstrated using examples comparing both the accrual method and cash method.
    ▪ The importance of the Matching Principle.
    ▪ The Pros and Cons of Accrual Basis of Accounting.
    🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
    ⏱️TIMESTAMPS
    00:00 - Intro
    01:30 - The Problem with the Cash Basis of Accounting
    01:49 - What is the Accrual Basis of Accounting?
    02:07 - How does the Accrual Basis of Accounting Work
    03:59 - What is the Matching Principle?
    04:45 - Advantages of Accrual Accounting
    05:14 - Disadvantages of Accrual Accounting
    06:07 - Which Method of Accounting Should a Start-up Use?
    🔎FAQ
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    DISCLAIMER
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    #accounting #accountingbasics #accountingstuff

Komentáře • 412

  • @AccountingStuff
    @AccountingStuff  Před 5 lety +468

    Who would be interested in some videos covering practice questions on each topic?

    • @shaheedalhelal
      @shaheedalhelal Před 5 lety +4

      intrested =^>

    • @AccountingStuff
      @AccountingStuff  Před 5 lety +7

      @@shaheedalhelal Thanks for watching, I'm putting out a video on practice questions on Monday :)

    • @AccountingStuff
      @AccountingStuff  Před 5 lety +11

      @@shaheedalhelal Hey Shaheed, I've just put up a vid covering practice questions on Debits and Credits --> czcams.com/video/yCOZ7aylC0c/video.html
      Give me a shout if there are any other topics you would like me to do questions on as well

    • @SuperlativeRam
      @SuperlativeRam Před 5 lety +1

      Yes, longer videos would be great.

    • @nataliedeveaux5631
      @nataliedeveaux5631 Před 5 lety

      Interested

  • @LetThereBeCode.
    @LetThereBeCode. Před 4 lety +67

    you bricked it down to the core living out of it good presentation and examples. that's how everybody should teach, once they fully understands something, not like other 45m videos to explain simple thing by pure ranting .

    • @AccountingStuff
      @AccountingStuff  Před 4 lety +9

      Thanks mate, I do my best to value your time and keep these as short and concise as possible. All the best!

  • @jlei1995
    @jlei1995 Před 2 lety +12

    I'm so happy I found your channel. You are the reason why I will pass my accounting class. My teacher is awful, so everything I'm learning, I'm learning from you. Thank you so much.

  • @walkstallkeith4560
    @walkstallkeith4560 Před 5 měsíci +3

    This is the best explanation ever!!! I literally sat there reading my textbook for 15 hours yesterday and I could NOT make any sense of this. Then in this 7 minute video you just made everything click together. Thank you so much. You are a phenomenal teacher.

  • @deannad2555
    @deannad2555 Před 4 lety +54

    I'm so glad I found your channel!!! Started studying accounting and this really helps cuz I'm a visual learner!! Thank you so much!

    • @AccountingStuff
      @AccountingStuff  Před 4 lety +4

      No problem Deanna, I am also a visual learner so can appreciate the struggle with textbooks etc. All the best

  • @therayray20000
    @therayray20000 Před 14 dny

    my 3 hour lecture was summed up in 6 minutes. just sent you thank you cash. amazing

  • @krystalevans9285
    @krystalevans9285 Před 2 lety +1

    Thank you so much for your videos! I am in my first year of an accounting degree and I would not have made it through the basics without your channel

  • @lylan8737
    @lylan8737 Před 4 lety +1

    God bless you whoever you are and wherever you are. Your explanation is magic i never got this from my professors or books. You made is simple. You are excellent

  • @momentshub3773
    @momentshub3773 Před 3 lety +34

    I love your video production man! Great content making job!

  • @randcwithvictor1829
    @randcwithvictor1829 Před rokem +3

    I hold a BSc in Microbiology, but having worked in the banking sector, I developed an affinity for Finance and decided to pursue a masters degree in Finance, it was really tough and challenging for me until I came across your channel. Thank you so much ( I wish you could create an A to Z terms in Finance and Accounting)

  • @TravelwithTasha393
    @TravelwithTasha393 Před 3 lety +2

    I am so happy that I discovered your channel. I was having such a difficult time in accounting and this is really helping

    • @AccountingStuff
      @AccountingStuff  Před 3 lety

      Hey Natasha, sorry to hear that you've been having trouble it. I'm glad that the videos are helping. All the best with your studies!

  • @soccerqueen4life2
    @soccerqueen4life2 Před 4 lety +5

    So happy I found this channel! Your videos are definitely going to help me get down the basics as I am currently taking my first Accounting course at University!

  • @mike.xzr.
    @mike.xzr. Před 4 lety

    This dude is the MVP. Thanks you sir!

  • @hasting06
    @hasting06 Před 3 lety +1

    Your videos are so helpful! This is my first time taking an accounting class and you're helping so much!

  • @scottfennell6568
    @scottfennell6568 Před 3 lety +1

    I just watched five videos on this topic for school and this was the most clear example.

  • @isambouhiaelhaouzi301

    You're absolutely the best! Thank you man!💪💪💪

  • @castaway8466
    @castaway8466 Před 3 lety +1

    Yes please do the practice questions!

  • @hikMAt.wali2
    @hikMAt.wali2 Před 3 lety

    your videos and al your lectures really help me while having deep problems in my accounting...
    thanks a million for your hard working ..

  • @1andycandy639
    @1andycandy639 Před 3 lety +5

    I wish you were around when I was in school 5 years ago. Your ability to break down the concepts behind why accounting works the way it does is so exciting and fun to watch. I can't get enough! Thanks.

  • @throopasahdew2477
    @throopasahdew2477 Před 2 lety +1

    Great explanation !! Thank you!!!

  • @mariehauschildt6409
    @mariehauschildt6409 Před 3 lety +1

    Thank you so much for your videos! You would not believe the anguish I have endured trying to get through my accounting class! Your videos have been a godsend. And hopefully, help me pass my final this next week! Many teachers (including the boring man I watch videos from) could really learn how to teach from your style!

    • @AccountingStuff
      @AccountingStuff  Před 3 lety

      Hey Marie, best of luck in your final exam!!! Hope it goes well :)

  • @castlechoirmusic
    @castlechoirmusic Před 3 lety +34

    Would love to go through some examples of expense and revenue accrued! Also the reversal of them 😊

    • @AccountingStuff
      @AccountingStuff  Před 3 lety +8

      Here you go... czcams.com/play/PL5zKSeS09l31dhHvwhS4sVjcckQSPGqtp.html

  • @blackjack4089
    @blackjack4089 Před 4 lety +15

    You are an answered prayer to accounting students like me. Thank you so much ❤

  • @poonmagarrahul
    @poonmagarrahul Před 2 lety

    Your videos really helped me a lot . Thanks for sharing such useful videos .

  • @davidrider8465
    @davidrider8465 Před 5 lety

    Hey love the Christmas lights, going through problems would be very nice thing to do and beneficial. Keep up your great lessons you're awesome.

    • @AccountingStuff
      @AccountingStuff  Před 5 lety

      Hey thanks! And cheers for the suggestion, I'll bear that in mind!

  • @jamestroyer9580
    @jamestroyer9580 Před 4 lety

    these videos and playlist are epic!!! your a lifesaver!

  • @14lamnc1
    @14lamnc1 Před 3 lety

    Thank you dude! Your videos are so incredibly helpful it’s genuinely amazing

  • @faruksekercioglu9152
    @faruksekercioglu9152 Před 3 lety

    I had a great time learning accounting with you today. Thanks a lot

  • @jinjin16
    @jinjin16 Před rokem +1

    Really helpful. Thanks. Keep it up.

  • @ibrahimmohammad760
    @ibrahimmohammad760 Před 2 lety +1

    Easy and Simple...!!! Thanks a ton...!!!

  • @shapebyshana324
    @shapebyshana324 Před 3 lety +1

    Professor James, Thank you again haha. I literally watch your videos before i review my lecture material. Helps me understand 100x faster.

    • @AccountingStuff
      @AccountingStuff  Před 3 lety

      Great to hear it's making sense! All the best in your studies :)

  • @oshaneb3176
    @oshaneb3176 Před rokem

    Currently reading publication 535 and this was really difficult to grasp but your video really helped. Thank you 👏🏽

  • @katriinareponen1689
    @katriinareponen1689 Před 4 lety

    longer videos and practise questions would be a great addition these awesome videos!

  • @farhanraza8068
    @farhanraza8068 Před 2 lety

    you made this easy to understand. thanks

  • @madeline2495
    @madeline2495 Před rokem

    Brilliant video! Thank you 🙏

  • @shafinakter3708
    @shafinakter3708 Před 3 lety

    Love the way you talk.

  • @esnartnyirenda8204
    @esnartnyirenda8204 Před 2 lety

    You are a great teacher.

  • @marthadelossantos3918
    @marthadelossantos3918 Před 2 lety

    Cool! I love the way you explain complicate methods, and the most important you master the subject. My congrats💯💻📖📚💲🗂📎📌📓🗒📆✏💡

  • @fatimahsbliss717
    @fatimahsbliss717 Před 4 lety

    Life saver, once again.

  • @anaveiga857
    @anaveiga857 Před 2 lety

    I would really appreciate longer videos with practical exercises.

  • @Dggb2345
    @Dggb2345 Před rokem

    Concise explanation. Thanks

  • @emmanuelramos5158
    @emmanuelramos5158 Před 2 lety

    Great video ! Thanks a lot :)

  • @saryuh5285
    @saryuh5285 Před 4 lety

    very clear explanation, thank you!

  • @xbethbeth1
    @xbethbeth1 Před 3 lety

    This is SO helpful, THANK YOU!!!

  • @Noname-gd1wg
    @Noname-gd1wg Před 4 lety

    You make accounting funny and easy! Keep up the good job

  • @melissah170
    @melissah170 Před 2 lety

    Thank you, subscribed for more accounting stuff!

  • @rosemariecharan2018
    @rosemariecharan2018 Před 4 lety +2

    I love that you make account so much fun♥️

  • @chess1011
    @chess1011 Před 2 lety

    You don't only explain beautifully but also the video quality (editing, sounds, production) is amazing.

  • @SuperlativeRam
    @SuperlativeRam Před 5 lety

    Great posts. Very useful. I am a student, just starting in accounting and have learned a tremendous amount from your super easy teaching methods. Keep posting, please.

    • @AccountingStuff
      @AccountingStuff  Před 5 lety

      Thank you! Great to hear that you are finding the videos useful. There are more coming soon!

  • @roxy44
    @roxy44 Před 2 lety +4

    Wooow! I am beyond amazed as to how well you made this presentation and how easy to understand this video was. I am an accountant but, I used to tutor accounting for the college I attended to for 3 1/2 years and very few people can understand and explain how accounting really works. I really enjoyed your video. Great job! 👍👍

  • @bonniemcdaniel4224
    @bonniemcdaniel4224 Před 4 lety +3

    I would not be passing my accounting class if it weren't for your videos! Not only am I passing, I have an "A" so far. Thank you for making videos that are so clearly stated and fun to watch! I learn more from your short videos than in my instructor's PowerPoint presentations. You are amazing!

    • @AccountingStuff
      @AccountingStuff  Před 4 lety

      Hey Bonnie, it's great to smashing your accounting classes! Keep up the good work :)

  • @Hello_Hawaii
    @Hello_Hawaii Před rokem

    Thanks for the understanding bro.

  • @joannamilligan689
    @joannamilligan689 Před 5 lety +21

    Yes! Please make practice question videos. You have made my job of bookkeeping for my new business a hell of a lot clearer! Thank you....Can't wait to learn more.

    • @AccountingStuff
      @AccountingStuff  Před 5 lety +1

      Hey Joanna, I'm glad you are finding some value in these! Yes, I am keen to make some videos on practice questions. Are there any areas that you would like me to cover?

    • @AccountingStuff
      @AccountingStuff  Před 5 lety +4

      Hey Joanna, the first practice question video is up --> czcams.com/video/yCOZ7aylC0c/video.html. This one covers Debits & Credits. Let me know what you think? If there are other topics you'd like covered then give me a shout

  • @TheWiscoKid
    @TheWiscoKid Před rokem

    great videos, thanks a bunch

  • @jehatr7508
    @jehatr7508 Před rokem

    Great stuff. Make more please

  • @ilkinmusayev2906
    @ilkinmusayev2906 Před 4 lety +1

    Great staff, im just on my way to learn ACCA Financial Accounting and found ur channel here hope ur videos will help me

  • @nancyssonni8365
    @nancyssonni8365 Před 2 lety

    Thank you, very helpful

  • @alexrennick70
    @alexrennick70 Před 3 lety

    thank you so much, you explained this waaaaay better than my lecturer did.

  • @thasleeminthash4435
    @thasleeminthash4435 Před 5 lety

    This was super cool .. ur teaching is awesome .. thumbs up to you👍 sir ... glad I found these videos

  • @AccountingZerotoHero
    @AccountingZerotoHero Před 2 lety

    This is great!

  • @robhines3686
    @robhines3686 Před 2 lety

    Yes examples would be very useful

  • @salmanahmad1006
    @salmanahmad1006 Před 3 lety

    Brilliant video background, concept is simply presented. Thanks

  • @user-yb6hv6mk6f
    @user-yb6hv6mk6f Před rokem

    Thank you!!!!!!!!!!!!!!!!!!! SUPER helpful!!

  • @markrowland7617
    @markrowland7617 Před 5 lety +1

    Definitely would like to see practice problems worked into the videos. The videos are beneficial even without the practice problems, but they'd be even better with them! Thanks and keep up the great work!

    • @AccountingStuff
      @AccountingStuff  Před 5 lety

      Thanks for the feedback Mark, I'll bear that in mind for future videos!

  • @muhammadrizman3398
    @muhammadrizman3398 Před 3 lety

    Thanks for the video mate👍👍

  • @ionutmoromete7186
    @ionutmoromete7186 Před 3 lety

    Very good explanation. Thanks.

  • @stelanikolova9823
    @stelanikolova9823 Před 4 lety

    You are helping me so so so much ! I really appreciate you and your videos ! Thank you , sir , keep up the magnificent work !

    • @AccountingStuff
      @AccountingStuff  Před 4 lety +1

      No worries, it's great to hear that the vids are helping. Good luck with your studies!

  • @bigdickbill6276
    @bigdickbill6276 Před 5 lety

    You saved a Chinese business student! Thank you so much

    • @AccountingStuff
      @AccountingStuff  Před 5 lety

      You are welcome, it's great to hear that you found it useful

  • @dost7496
    @dost7496 Před 3 lety

    Thank you for your work , it’s very useful in my studies

  • @evaparekh3469
    @evaparekh3469 Před 4 lety

    Thank you
    Your teaching method is amazing

  • @juliscabruney4824
    @juliscabruney4824 Před 4 lety

    I would really love it if you started some longer form videos with practices. I appreciate your channel so much...thank you !

    • @AccountingStuff
      @AccountingStuff  Před 4 lety

      Thanks for your suggestion Julisca, I'm considering trying out some longer formats

  • @moondust5967
    @moondust5967 Před 4 lety +1

    You are really genius Master. Especially your words and structuring of ideas are very encouraging for weak students of accounting like me. I very eager to follow those videos to come which will hopefully cover practice sessions. Thank you again

    • @AccountingStuff
      @AccountingStuff  Před 4 lety

      Thanks Sunny! It's great to hear that you're finding the content helpful. I plan to release many more soon

  • @CA.Journey_with_umaima
    @CA.Journey_with_umaima Před 18 hodinami

    Love your teaching method

  • @elinanakaona8240
    @elinanakaona8240 Před 2 lety

    That would be so helpful indeed

  • @cesarparedesmusic
    @cesarparedesmusic Před 3 lety

    Excellent! Thank you

  • @frankgarcia3486
    @frankgarcia3486 Před 2 lety

    You are an accounting god!!! Is there any online classes with you?

  • @ericfernandez4972
    @ericfernandez4972 Před 4 lety

    Yes, practice problems are the best!

  • @desreeisibor5855
    @desreeisibor5855 Před 4 lety

    this helped so much!!!!

  • @m.bilalmajid
    @m.bilalmajid Před rokem

    Thank you so much!!!

  • @beyondtheimaginations9002

    Your video is very helpful 👍🏻

  • @jacquelineruiz7130
    @jacquelineruiz7130 Před rokem

    yes i would like for you to show more in detail

  • @tomlindsay7861
    @tomlindsay7861 Před 3 lety

    good video, cheers bro

  • @accounteristcpa9261
    @accounteristcpa9261 Před 4 lety

    Thank you for always coming up with those creative examples that can clear all my confusions. You are amazing sir! :)

    • @AccountingStuff
      @AccountingStuff  Před 4 lety +1

      No worries, hope it's making sense!

    • @accounteristcpa9261
      @accounteristcpa9261 Před 4 lety

      @@AccountingStuff I'm having trouble with corporation accounting. Can you recommend me a book to read for this particular topic? thank you so much :)

    • @AccountingStuff
      @AccountingStuff  Před 4 lety

      @@accounteristcpa9261 Hmmm... for beginners I recommend "The Accounting Game"

  • @beefpaddy3118
    @beefpaddy3118 Před 4 lety

    great video man. youre a top bloke

  • @user-xt1tx7kx1r
    @user-xt1tx7kx1r Před rokem

    It will be really useful to solving more problems

  • @cryptoholic5120
    @cryptoholic5120 Před 4 lety

    keep up the tremendous content

  • @ericf8453
    @ericf8453 Před 4 lety

    Yes please, I need practice!

  • @TaijutsuEnthusiast
    @TaijutsuEnthusiast Před 8 měsíci

    Thank you very informative!!!

  • @claudiajarquin5029
    @claudiajarquin5029 Před 5 lety +1

    Yes please make the long practice problem videos.

    • @AccountingStuff
      @AccountingStuff  Před 5 lety

      Hey Claudia, thanks for your suggestion. I'll keep that in mind!

  • @laurentmasuku8982
    @laurentmasuku8982 Před 3 lety

    I also support the idea of doing questions

  • @am97000
    @am97000 Před 2 lety

    Thank you

  • @laurentmasuku8982
    @laurentmasuku8982 Před 3 lety

    I really understand your videos thank

  • @hazemmashal2753
    @hazemmashal2753 Před 2 lety

    Thanks

  • @irneyparton6327
    @irneyparton6327 Před 3 lety

    Hi! love these videos. Great job! Any chance you make a video walking us through the process of switching from cash-basis to accrual-basis? Thank you!

  • @kiara4681
    @kiara4681 Před 3 lety

    Grateful 👽

  • @YuxiangChi
    @YuxiangChi Před 4 lety

    nice stuff!

  • @Medo341q
    @Medo341q Před 4 měsíci

    bro i have a term exam i understand the concept of basic acccounting because you are presice and your vidieos are informative and intersing at the same time

  • @KeepingUpWithKesh23
    @KeepingUpWithKesh23 Před rokem

    Make more videos on accrual accounting please and with examples on how to work it out

  • @ghostahmad2g591
    @ghostahmad2g591 Před 2 lety

    well done

  • @VA-jf5pb
    @VA-jf5pb Před 3 lety

    Your videos are life savings to me. I always watch them before I start an exam on a particular subject.
    Thanks 🙏

    • @AccountingStuff
      @AccountingStuff  Před 3 lety

      Glad to hear it! Hope your exams are going well :)

    • @VA-jf5pb
      @VA-jf5pb Před 3 lety

      @@AccountingStuff killing it so far with 94%
      I am a visual so your videos really help (books alone are not enough) + you have a great energy. Thank you so much for your hard work. I definitely appreciate it big time. Cheers.

    • @AccountingStuff
      @AccountingStuff  Před 3 lety

      @@VA-jf5pb Thanks awesome, congrats!!!