At some point in setting up your books, you’ll run into a question that sounds far scarier than it is: do you keep your books on a cash basis or an accrual basis? People tend to nod, pick whichever word they heard last, and move on terrified. Let’s actually understand it, because for some of you — travel agents especially — it genuinely matters. The whole difference comes down to one thing: when you count the money. Cash basis: you count it when it actually moves. Income coun
