Cash vs Accrual Accounting Explained With A Story

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  • čas přidán 26. 06. 2024
  • Get Access to My Course "Fundamentals of Financial Analysis" here 👉 www.xelplus.com/course/learn-...
    Dive into the world of accounting methods! This video provides an in-depth comparison between cash and accrual accounting, helping you understand their impact on business financials.
    Join 400,000+ professionals in our courses here 👉 link.xelplus.com/yt-d-all-cou...
    Key Concepts Explored:
    ▪️ Cash Accounting: Discover the simplicity of the cash-based system and its focus on actual cash transactions.
    ▪️ Accrual Accounting: Learn how accrual accounting provides a more comprehensive view by recognizing revenue when earned and expenses when incurred.
    In-Depth Analysis:
    ▪️ Timing of Revenue & Expense Recognition: Understand the critical timing differences in recording transactions.
    ▪️ Case Study Illustration: Follow Claudio's souvenir business example to see how each method affects real-life business scenarios.
    ▪️ Advantages & Disadvantages: Weigh the pros and cons of each method for different business sizes and types.
    Why Income & Cash Flow Differ: Grasp why reported income and actual cash can be vastly different, and why understanding both is crucial for financial health.
    🔍 GAAP & IFRS Reporting Standards: Learn about the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) compliance in accounting methods.
    00:00 Accrual Accounting vs. Cash Basis Accounting
    00:56 What is Cash Accounting
    02:38 Accrual Accounting Explained
    03:27 Cash and Accrual Accounting explained with a Story
    09:13 Advantages and Disadvantages for both methods
    Check out the full article here: www.xelplus.com/cash-vs-accru...
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    Note: This description contains affiliate links, which means at no additional cost to you, we will receive a small commission if you make a purchase using the links. This helps support the channel and allows us to continue to make videos like this. Thank you for your support!
    #Accounting

Komentáře • 346

  • @LeilaGharani
    @LeilaGharani  Před 4 lety +120

    Get access to the complete "Fundamentals of Financial Analysis" course here 👉 www.xelplus.com/course/learn-financial-analysis/

    • @AllStars2525
      @AllStars2525 Před 4 lety

      Great presentation!

    • @mohammedalkaff1506
      @mohammedalkaff1506 Před 4 lety +1

      I cannot wait for the coming video!

    • @BTFOOMNY
      @BTFOOMNY Před 4 lety

      I answered a couple of comments below, but based on the subject matter, I think the rest of your viewers could benefit from you doing a complete presentation on each.
      Equipment leases: The distinction between an operating lease and a purchase lease is extremely important, and the accounting entries are completely different.
      Inventory methods: LIFO, FIFO, Specific Identification and Weighted Average. It's a very complex subject. There is a fifth method we accountants joking refer to as FISH (First In Still HERE) We are easily amused. LOL
      For years I have told people that many of our clients are not-for-profit businesses. Most of them don't want to be, but they are just not good business people. LOL
      Keep up the good work.

    • @alialaalihassan
      @alialaalihassan Před 3 lety

      Great Leila well presented

    • @pooriafarokhianIRAN
      @pooriafarokhianIRAN Před 3 lety

      It was great and free, I pay for my online course and I didn't understand until I watched this video. Thanks in advanced

  • @hornetcapitalfund
    @hornetcapitalfund Před 4 lety +128

    I appreciate the slow and well-detailed video. The story helps a bunch for the visual type learners. Great Job!

    • @LeilaGharani
      @LeilaGharani  Před 4 lety +3

      I'm glad you find video helpful.

    • @wsrenterprisesinternationa6216
      @wsrenterprisesinternationa6216 Před rokem

      Yes, us visual learners really appreciate this video. I loved the diagrams and illustrations, I caught on much quicker. - Wellington S. Ramsey

  • @meatballer1087
    @meatballer1087 Před 3 lety +47

    these online classes have been kicking my butt, thank you for the help!

    • @naplaysyt7761
      @naplaysyt7761 Před 3 lety +1

      haha to be honest that's the same reason I am here...

  • @ferenkehkoroma8171
    @ferenkehkoroma8171 Před 4 lety

    Your deserved my respect Leila for simplify this old time concept. The accrual basis will not be in line with taxation principles.

  • @axolilekopman2065
    @axolilekopman2065 Před 2 lety +2

    Wow, I wish I watched this when I was still doing my degree Leila, this was so simple, concise, and very informative.

  • @yours.trustworthy
    @yours.trustworthy Před 4 lety +7

    Simple yet thorough explanation to this confusing topic. Thanks a ton.
    I think, you work in team... you can introduce teammates sometime.
    Keep up this Great Work !!!

  • @oliviahope3728
    @oliviahope3728 Před 3 lety +6

    This is SO helpful. Love that you tell a story with it - I will always remember now :)) Thank you!

  • @mariostudio7
    @mariostudio7 Před 4 lety +4

    I love the accounting videos! 😊 Very well explained with simple and easy-to-understand examples!

  • @danielschmidt9276
    @danielschmidt9276 Před 3 lety +1

    Awesome videos. My Accounting class at the University had been difficult but not so much now because of your videos. Thank you soooo much! Dan Schmidt, Oshkosh, Wisconsin.

  • @anthonykellerman2542
    @anthonykellerman2542 Před rokem +3

    Thank you for this video, Really helped with my accounting class. I understand concepts but I like to know the why of things and you broke that down perfectly for me.

  • @ITB108
    @ITB108 Před rokem

    I appreciate the simplicity and detailed video. Thank you.

  • @pacificreef6391
    @pacificreef6391 Před 3 lety +2

    Thank you Leila for your explanation, You are very understandable and easier for me to absorb the topic. I hope you put more videos/lectures on accounting and business law as I am preparing for CPA Board exam.

  • @maliamoa1796
    @maliamoa1796 Před 4 lety +5

    Thankyou so much for the detailed help appreciate this so much!

  • @razehal-shawea5191
    @razehal-shawea5191 Před 3 lety +2

    I just started working in a bank, over a month give or take.... This actually helped me a lot. thanks Leila. BTW, your name is so lovely.

  • @darkshinigami9438
    @darkshinigami9438 Před 4 lety +3

    Great job Leila, I can't wait for the next video :D

  • @AlexVoxel
    @AlexVoxel Před 3 lety +2

    Great explanation, first time I truly understand it. Thank you!

  • @ShWBOA
    @ShWBOA Před 3 lety +2

    I really like how you explained all of that. Hope you can produce more videos like this🥺. It would really help accountancy students🥰🥰

  • @carsonhertler2192
    @carsonhertler2192 Před 2 lety

    Great channel! I'll keep coming back as I continue studying accounting.

  • @simoiyahector-morales3781

    Amazing tutorial, thankkkk youuuu

  • @seymagulnihalyildiz6488
    @seymagulnihalyildiz6488 Před 5 měsíci

    you are the BEST TEACHER! everything great about this video, content, your style of telling, graphics, with this way its fun to understand, thank you

  • @twintowersmedia6274
    @twintowersmedia6274 Před 4 lety +5

    Great job! Very helpful in making a couple of decisions. Thanks!

  • @va07
    @va07 Před 3 lety +2

    So simple and clear explanation. Great job, thank you!

  • @erwin5668
    @erwin5668 Před 3 lety +8

    I have an exam midterm for accounting tomorrow, this was really helpful. Our class accounting book from my professor explains these methods too deeply and I lose focus therefore never learning properly. This video made the concepts easy and intuitive. Just subscribed, going to be watching more videos here.

  • @derinsider3438
    @derinsider3438 Před 3 měsíci

    @Leila..Many thanks. You explained a complex concept in plain English, making it easy to understand.😊

  • @LennyTurner
    @LennyTurner Před 3 lety

    Thanks for the video - thoroughly enjoyed learning about this.

  • @RecycleAllTheThings
    @RecycleAllTheThings Před 4 lety

    great job and very helpful!! Thank you!

  • @taljitmanak6578
    @taljitmanak6578 Před 2 lety

    Thank you so much! You make it so easy to learn!

  • @joshuamanampiu6489
    @joshuamanampiu6489 Před 4 lety

    Thanks for making this topic so easy to understand

  • @yonatanteshome4701
    @yonatanteshome4701 Před 3 lety +2

    I have an exam in 2 hers and this vid helped me better understand the concept, thanks

  • @anthonysedjoah8101
    @anthonysedjoah8101 Před 4 lety

    Very concise and easy to understand...Thanks so much

  • @longitude74e
    @longitude74e Před 4 lety

    Ur voice is mesmerizing.... I just see ur videos to hear u.. no metter what u teach.. plz keep uploading videos..

  • @Oreocookie-fz3pg
    @Oreocookie-fz3pg Před rokem

    love how you explain everything !! i actually understand it 😅 ❤

  • @freebadinfluence6948
    @freebadinfluence6948 Před 3 lety

    These videos are really helpful i'm trying to learn as much as possible all about business before i open my own store

  • @shawnsweetonmoras6856
    @shawnsweetonmoras6856 Před 2 lety

    I started love learning accounts after watching your videos

  • @RELUvance
    @RELUvance Před 4 lety

    Another excellent video Leila!!

  • @nokibsorkar2218
    @nokibsorkar2218 Před 7 dny

    Awesome video and very detailed.

  • @elijahpeart6222
    @elijahpeart6222 Před 3 lety

    Brilliant video, thank you!

  • @ckokse
    @ckokse Před 4 lety

    Great video. Thank you!

  • @AccountingZerotoHero
    @AccountingZerotoHero Před 2 lety

    We appreciate all these lessons! You served as my inspiration for all my videos!

  • @shellybrentlinger7403
    @shellybrentlinger7403 Před 3 lety

    Thank you so much for these videos. The examples you give really make things easier to understand.

  • @CarlosEliezerHernandezPintor

    Absolutely brilliant!

  • @yumnariyas1806
    @yumnariyas1806 Před 9 měsíci +1

    This is so beautifully explained thankyou❤️

  • @luiwingkiu6583
    @luiwingkiu6583 Před 2 měsíci

    Such a well explained and clear video, thank you!

  • @kwandilemncwango6062
    @kwandilemncwango6062 Před rokem

    Really informative! Thank you 😊

  • @8botak8
    @8botak8 Před rokem

    Clear and concise, appreciated the effort

  • @krissydeebeachgirl
    @krissydeebeachgirl Před 3 lety +3

    I’ve watched so many of your helpful excel videos before. Had no idea you did accounting videos too. This has been very helpful as I’ve just started in the finance and having difficulty understanding accruals versus actuals and then reversals etc omg.

  • @beverleygregory
    @beverleygregory Před 11 měsíci

    thanks for this just trying to get my head around all this info for better anallysis of company stock

  • @camla2251
    @camla2251 Před 3 lety

    Thanks for answering my question!

  • @ktprince2007
    @ktprince2007 Před 3 lety +7

    this video is so much more effective than my textbook!

  • @juanjajan7243
    @juanjajan7243 Před 4 lety +2

    Thank you so much,You're special🌹

  • @acksonmunthali593
    @acksonmunthali593 Před rokem

    Very useful.Thanks.

  • @faitholateju6590
    @faitholateju6590 Před 2 lety

    ANOTHER GREAT VIDEO! SO CLEAR!

  • @throopasahdew2477
    @throopasahdew2477 Před 2 lety

    Your are an excellent pleasant voiced, well paced teacher

  • @Logan-js2uk
    @Logan-js2uk Před 3 lety

    This was an excellent explanation.

  • @pankakemix99
    @pankakemix99 Před 2 lety

    fiery and passionate presentation of accounting, Leila

  • @dorickaharry245
    @dorickaharry245 Před rokem

    This video of cash and accruals basis is helpful. Thanks to you.

  • @coeniejvr
    @coeniejvr Před rokem

    this was very well explain, thank you

  • @ashokkumarjeyaraj9799
    @ashokkumarjeyaraj9799 Před 2 lety

    Very helpful, thanks

  • @Samantha-jj1oi
    @Samantha-jj1oi Před 9 měsíci

    Super helpful!! Thank you so much!!!!!!

  • @Duc29301
    @Duc29301 Před 3 lety +1

    I really enjoy learning the basic accounting concepts presented in this video and other videos that you had posted. Your presentation is very clear, precise, and easy to follow. On top of that your graceful mannerism and your voice are very pleasantly heard and watched. Thank You for making these great videos.

    • @LeilaGharani
      @LeilaGharani  Před 3 lety

      My pleasure. Glad you enjoyed the videos!

  • @markfahim3648
    @markfahim3648 Před 3 lety

    This video is Very GREAT

  • @JonathanJustus
    @JonathanJustus Před rokem

    Fantastic explanation

  • @ismailismaili0071
    @ismailismaili0071 Před 4 lety

    I was waiting for it thank you Ms. Leila as always for the good information

  • @mazensalman4784
    @mazensalman4784 Před rokem

    Thanks a lot, great video.

  • @davidreyes860
    @davidreyes860 Před 4 lety

    This video is very helpful. Thank you

  • @kaylahowl
    @kaylahowl Před 2 lety

    This was so so helpful!

  • @ulugbekkholiq2445
    @ulugbekkholiq2445 Před 2 lety

    Thank you Leila for your explanation

  • @Betterifitsfree
    @Betterifitsfree Před 4 lety

    A quick and concise overview of the first 2 weeks of college intermediate accounting class. Often a confusing and intricate principle for most students. Who would've thought that it would described so clearly in 11:00min. by the the Microsoft Excel Queen herself? Not suprised. Great job👍

    • @LeilaGharani
      @LeilaGharani  Před 4 lety +1

      Glad you liked it. Thanks for the kind feedback :)

  • @cmg7508
    @cmg7508 Před 2 lety

    Very well explained.. Thank you.

  • @CAROL-ki2qu
    @CAROL-ki2qu Před 3 lety

    Hoping for more videos from you on Accounting!

  • @iAmAwesumeness
    @iAmAwesumeness Před 3 lety

    This video was literally perfect!

  • @Yun-Sura
    @Yun-Sura Před 3 lety

    Thank you so very much!

  • @rafiqismayil4511
    @rafiqismayil4511 Před rokem

    really great explanation

  • @krn14242
    @krn14242 Před 4 lety

    Great explanation of accounting. thanks Leila.

  • @abby7190
    @abby7190 Před 4 lety

    Extremely helpful and thanks for the illustration

  • @mohiadinhassanshismail8330

    Thank you. Before now i was confused how revenue is earned. Really anxiety, but now flexible. Thanks.

  • @Maryabril
    @Maryabril Před rokem

    Very well explained

  • @somyaprasad5086
    @somyaprasad5086 Před 10 měsíci

    Thank you so much. You have explained in simple words which we can understand as understanding of finance is difficult for layman. Thanks alot. Keep posted more videos

  • @JAYLYPHE
    @JAYLYPHE Před 3 lety

    Thanks. Really helped

  • @kellyvenesky2442
    @kellyvenesky2442 Před rokem

    I just started my accounting class and this has been very helpful. Thanks for explaining in detail . I look forward to watching more videos .

  • @Anji9
    @Anji9 Před 7 měsíci

    Thanks for your fentastic explanation to understand the difference clearly.

  • @Yobidefy
    @Yobidefy Před 3 lety

    keep it up! I learned a lot! 👍👍

  • @user-is7dw8oq2m
    @user-is7dw8oq2m Před 3 lety

    Thank you Leila, your video is very clear and understoodable.

  • @samuelraj4134
    @samuelraj4134 Před 2 lety

    This video was too good😊

  • @sarfarajkureshi6569
    @sarfarajkureshi6569 Před 4 lety

    Helpful for recover basic point in accounting

  • @Theguywithephonyname
    @Theguywithephonyname Před 3 lety

    Well played, well explained!

  • @triple7marc
    @triple7marc Před 3 lety

    Thank you very much!

  • @MARKCRASTO
    @MARKCRASTO Před rokem

    Amazing!

  • @divyavaru2596
    @divyavaru2596 Před 3 lety

    Thank you for the explanation makes much easier to apply and follow.

  • @WijthaGayan
    @WijthaGayan Před 3 lety

    Great work .lot more information

  • @maearianboter6052
    @maearianboter6052 Před 2 lety

    thank you very much!!

  • @omarhashimi3710
    @omarhashimi3710 Před 3 lety

    Thank you so much
    best explanation🙏

  • @prapawansuisri
    @prapawansuisri Před 11 měsíci

    thank you so much!!

  • @arturog.renteria560
    @arturog.renteria560 Před 2 lety

    Thank you!

  • @AsiyaIammuah
    @AsiyaIammuah Před 3 měsíci

    Awesome video thank you so muchh

  • @lillyknopf9487
    @lillyknopf9487 Před 3 lety

    Thank you so much! I love your videos and have been watching them for a year now. I only wish youd do videos in US dollars because it can be confusing with money i'm not used to dealing with..

  • @vijaygusain119
    @vijaygusain119 Před 4 lety

    Very helpful!

  • @arqmiryam
    @arqmiryam Před 3 lety

    Very helful and easy to understand! Thank you!

  • @somonychan3593
    @somonychan3593 Před rokem

    I really love this explanation. Thank you!

  • @michelaminetti2681
    @michelaminetti2681 Před 3 lety

    very nice! it helps a lot!!!