Cash Accounting: How it Works & Should You Use It?

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  • Опубліковано 13 гру 2024

КОМЕНТАРІ • 151

  • @AccountingStuff
    @AccountingStuff  6 років тому +42

    Hey Viewers! I hope you learned something in this video 🙂As always, please let me know if you have any video requests here in the comments

    • @kaylabuzzard6267
      @kaylabuzzard6267 5 років тому +3

      you have no idea no much these have helped. I watch these before the class lesson to understand it better when they are actually explaining it. doesn't hurt that your easy on the eyes . keep it up Mr. James :)

    • @rocker76m88
      @rocker76m88 4 роки тому

      Thank you for these videos. I'm cleaning out the accounting cobwebs in my brain 🧠

    • @siobhanscanlon343
      @siobhanscanlon343 3 роки тому

      hey! do you have any videos on using the cashbook as a double entry instead of just a daybook?

  • @Aiiishwaryaaa
    @Aiiishwaryaaa 4 роки тому +44

    Wow, I'm binge watching your content on a Sunday!

    • @AccountingStuff
      @AccountingStuff  4 роки тому +9

      Accounting on the weekend?! Hope you find it helpful

  • @revin_john
    @revin_john 4 роки тому +13

    Such an underrated channel! All accounting students should subscribe to this page!

  • @purbitajannatprova5375
    @purbitajannatprova5375 4 роки тому +35

    Honestly, best channel to learn from basics. I'm going to cover all of your lectures. Really really appreciate your way of explanation and effort. TA 😄

  • @Jl-pi3wy
    @Jl-pi3wy 4 роки тому +19

    I actually just love his energy bring into the video . Making accounting sounds more interesting

  • @yvettezapata3947
    @yvettezapata3947 2 роки тому +4

    Taking an accounting class and these videos are a life saver. The energy he has in every video and the way he explains it makes it quite easy for me to understand.

  • @LadyPearl00
    @LadyPearl00 3 місяці тому +1

    This was the most clear and simple explanation of cash-basis accounting that I have seen as of yet!! (two-thumbs up)

  • @ghostahmad2g591
    @ghostahmad2g591 3 роки тому +3

    bro ur a life saver i hated accounting now i have fun watching ur vids

  • @susangarciaroman2603
    @susangarciaroman2603 3 роки тому +12

    Thank you. I've just enrolled into an accounting course and I'm using your tutorials as a great supplement to my class study materials. You explain the principles very well. Again, thanks. 👍

    • @AccountingStuff
      @AccountingStuff  3 роки тому +1

      Cheers Susan! Hope your course is going well :)

  • @sherylmamalias7138
    @sherylmamalias7138 3 роки тому +6

    You made accounting easy to understand. I love how you explains it and how you present it.

  • @chekter4051
    @chekter4051 4 роки тому +3

    This Channel Deserve More Views ! Its So Helpful

  • @TCR7811
    @TCR7811 Рік тому +1

    Thank you SO MUCH for all of your videos ...

  • @debrastreeter6166
    @debrastreeter6166 2 місяці тому

    I've learned so much in 10 minutes of watching your videos, I'm referring your sight to others!!!Thank you 😊

    • @AccountingStuff
      @AccountingStuff  2 місяці тому

      You're very welcome! Great to hear it's clicking for you :)

  • @zinebaitalla4135
    @zinebaitalla4135 Рік тому +1

    thank you; ure the best

  • @aabdel3697
    @aabdel3697 5 років тому +1

    I just finished my first accounting test and got an A thanks to your videos!

  • @josh1667
    @josh1667 3 дні тому

    Just stumbled across your UA-cam page, man, you do an excellent job breaking things down so that you can easily understand. Will continue to follow and watch your videos as I am obtaining a certificate in bookkeeping in the purusit of opening a bookkeeping business. Appreciate you, bro!

  • @bikenraider99
    @bikenraider99 6 місяців тому

    5 years later and still relevant. Thanks broski!

  • @mundheral.askari3450
    @mundheral.askari3450 5 років тому +3

    This is a great video specially for beginners (like myself) or people with 0 accounting experience. The video was brilliant and wonderfully made. hanks a lot

    • @AccountingStuff
      @AccountingStuff  5 років тому +1

      Thanks Mundher, that is kind of you to say. Glad to hear you got some value from the video!

  • @lunamorris2091
    @lunamorris2091 Рік тому

    Thank you for the video!!! We learn a lot from you! Thank you!

  • @annmariyathomas2456
    @annmariyathomas2456 Рік тому

    Thank you 😊
    Your videos are really helpful, especially for people like me who are new to accounting.

  • @Violetjade74
    @Violetjade74 Рік тому

    Thank you James.
    This was very helpful.

  • @itzsaryuh
    @itzsaryuh 5 років тому +1

    thank you again for providing such helpful video!

  • @noobaw420
    @noobaw420 6 років тому +1

    PMish vid transition 😍
    Great work

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Thanks AnuBhav! I would love to add a vid translations but I need help translating them.

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Just realised that I totally misread your comment! Apologies for that. Haha yes I am a big fan of PM and have watched many of his tutorials so have definitely picked up a few of his tricks 🙂

    • @noobaw420
      @noobaw420 6 років тому +1

      Hey sir can you do a vid on journal entry?

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Thanks for the suggestion! I have actually already made one. You can find it here... ua-cam.com/video/Y-_Q3rANyxU/v-deo.html

  • @AmarSingh-ld5fm
    @AmarSingh-ld5fm 6 років тому +9

    Woohoo so finally you are back 😊 the things which teachers can't explain you explain it very simply 😊 okay okay so waiting for your next video James sir ❤😊

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Hey Khushi, thanks for stopping by again! I'm working on the next video as we speak :)

  • @NgocNguyen-li6uf
    @NgocNguyen-li6uf 4 роки тому +3

    Hey James, could you please cover differences that can result in deferred tax assets or deferred tax liability? I would really benefit from your explanation of this topic!

  • @raffaelepigneri1413
    @raffaelepigneri1413 5 років тому +2

    Great videos and channel man... I like when you "categorize" basic concepts (I loved your definition of credits->debits as source->destination of economical benefits!!!!). Have you already done anything similar for adjustments? If you haven't, it could be a nice topic to cover, keep it up!!

  • @trishafoley1967
    @trishafoley1967 5 років тому +5

    Thank you for these great videos! I share them regularly with my accounting class (high school level). I think it's helpful for students to hear concepts explained differently by different people.
    On that note, I have a request for future videos. Would you consider doing adjusting entries? and/or closing entries? Particularly adjusting entries seem to stump accounting beginners. ;)

    • @AccountingStuff
      @AccountingStuff  5 років тому +1

      Hey Trisha, thanks! Cheers for sharing the videos. Yes I would like to cover adjusting entries soon. I plan to cover Prepayments and Accrued Expenses in the coming weeks which are two of the main types of adjusting entries.

  • @amaljeeson3786
    @amaljeeson3786 6 років тому +1

    Great video... Keep making more

  • @MOMIN-sq1qm
    @MOMIN-sq1qm 3 роки тому +1

    your responsible for my full marks :)

  • @mukahazah8998
    @mukahazah8998 3 роки тому +1

    I supported the channel; debited it with a *like*💯😉... Thank you for all your work sir. It really does make a difference. More strength and creativity to u. 💪🏿

  • @detoxandhamster
    @detoxandhamster 2 роки тому

    Hey James! Great videos, thank you for making them. BTW, Where do you live? Your view is amazing.

  • @rachitasharma1815
    @rachitasharma1815 6 років тому +1

    Hi...your videos have been quite helpful. Can you explain cash flow and fund flow

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Thanks Rachita, yes I will do videos on those topics soon!

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Hey Rachita, I've just uploaded a video on Cash Flow using the Direct Method... ua-cam.com/video/Xy-yDw0gsgc/v-deo.html
      I'll make another using the Indirect Method very soon 🙂

  • @tw2800
    @tw2800 3 роки тому +2

    It seems that a drawback to accrual basis accounting is that an assumption is made that when a company bills a client that the client will always pay....recognizing revenue when. Its earned seems reasonable....but if a company earns revenue and the client does not pay then it would appear a company has assets which it doesn't actually possess.....what are your thoughts on this?

  • @marieclaudettegarella2038
    @marieclaudettegarella2038 5 років тому

    Thanks also for this video; clear and awesome as always

  • @heshamnasher4997
    @heshamnasher4997 4 роки тому

    Thank you for explaining it! best regards

  • @sabianzhupa2245
    @sabianzhupa2245 3 роки тому

    thank you so much , you are so clear :)

  • @swamijeevanpromod1657
    @swamijeevanpromod1657 Рік тому

    Supa Supa Supa 👍

  • @genicehallmon2549
    @genicehallmon2549 Рік тому

    Thanks

  • @vedprakashsingh4287
    @vedprakashsingh4287 Місяць тому +1

    daam, thank you bro❤

  • @thecrisisfortruth
    @thecrisisfortruth 3 роки тому

    the journal entry#1 Expense I understand but the journal entry #2 revenue totally confused me.could you clear it up for me? I thought ,Revenue is a balance credit, a credit increases it and a debit decreases it? At the 1:52 point

  • @gabrielamaldonado3669
    @gabrielamaldonado3669 6 років тому +1

    Can you do a few vids on merchandising operations and multiple step income statements pretty please

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Hey Gabriela, thanks for your suggestion! I will look into it.

  • @Yneekas
    @Yneekas 3 роки тому

    how does an expense appear in the ledger under cash basis. FOr eg, if you buy office equipment, how is that treated in gen.ledger under cash basis?

  • @asmitanarkar2225
    @asmitanarkar2225 6 років тому +1

    Will you make videos on big chapters like NPO,issue of shares , debentures?

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Hey Asmita, thanks for your suggestion! I would like to get on to more complex topics like the these, however I'm currently focused on Accounting Basics so it could be a while before I get onto those areas.

  • @100happythoughts
    @100happythoughts 4 роки тому

    I hated Accounting.....until now. Thank you.

  • @purnimahrohamally5287
    @purnimahrohamally5287 3 роки тому

    Could you please explain cash book and AP/AR on sage Accpac? Thanks in advance

  • @PradeepKumar-fn5zv
    @PradeepKumar-fn5zv 6 років тому +1

    Hey can you make a video on ledger posting

    • @AccountingStuff
      @AccountingStuff  6 років тому

      Hey Pradeep, thanks for your suggestion. I will look into doing that. In the meantime... I have made a video on Journal Entries here is touches on the topic: ua-cam.com/video/Y-_Q3rANyxU/v-deo.html

  • @mrandroid2191
    @mrandroid2191 9 місяців тому

    Great video. I have started selling items online Oct 23, it's now Feb 24. I purchased stock a few years ago, now selling that. Each item I sell, do I use the receipt from 2022 and show that as an expense? Thank you.

  • @varshajoshi8749
    @varshajoshi8749 3 роки тому

    Hi very nice and informative video, would greatly appreciate if you could suggest on- will it be considered accrual or cash basis, if somebody receives payment from an organisation, and the person on his/her bank account where he/she submits invoice to an organisation for the online payment (received to his/her bank), and with person receives money on a bank account (without submitting any invoices)?

  • @agodkin223
    @agodkin223 4 роки тому +2

    Hey, can you demonstrate how turbo tax keep and record their transactions in their financial statements for tax purposes

  • @amandafrisius47
    @amandafrisius47 4 роки тому +1

    Can you do a petty cash break down? Right now I’m learning payroll and petty cash with charts.... it’s very confusing 🤦🏽‍♀️
    Thank you 😊

  • @ngawangloday4025
    @ngawangloday4025 4 роки тому

    Hello James!
    Got a question on treatment of advance taken on Receipt & Payment Account.
    For instance; if an employee has taken advance USD 500 for the company related expense at Dec. 31 (Financial Period : January 1 - December 31). How is it shown on the financials (Receipt & Payment Account). Assuming that the employee has not spent the money but has taken the advance from the company. will the advance amount be carried forward in the next financial period or not?
    Thank you.

  • @getthefnckout8659
    @getthefnckout8659 4 роки тому +1

    Great video. Just the beginning was a little hard to hear, I think it was because of the music.

  • @lamiaaitbouskri278
    @lamiaaitbouskri278 3 роки тому

    please we need manufacturing accounting , cost of good, inventory valuation etc. and some ratios main one to decide if we invest in a company or not. thank you thank for your creative way of presentation

  • @kevv.1912
    @kevv.1912 Рік тому

    Hey James, have you made any videos on discounts?

  • @oddv3nturar3
    @oddv3nturar3 4 роки тому

    can you please make a video about GAAP? 🙏

  • @TheDigglesFamily
    @TheDigglesFamily 2 роки тому

    Another very helpful video. Thank you. I do have a question. With cash basis, am I correct that you record the date you received the check/cash and NOT the date you deposit it in the bank account? If so, is the rule of using the date received changed when you receive a check (tax deductible donation) after 12/31, but the envelope was postmarked on or before 12/31? Is it that the donation is recorded the day received (not the day postmarked or deposited), but if the post mark is on or before 12/31 their donation counts for the previous year? But, it seems that will make the books messy. It has been a long time since this video was made. I hope you are still around answering questions and making these excellent videos. Thank you.

  • @hassanalinasir6770
    @hassanalinasir6770 5 років тому +1

    sir also explain mutual fund and hedge fund

  • @wildwindownorway
    @wildwindownorway 4 роки тому

    can you please cover contra entries. thanks

  • @mekdesaychew3209
    @mekdesaychew3209 3 роки тому

    First of all, I love your channel...it has been very helpful but can't seem to get those cheat sheets. Am not sure how to make the payments since we don't use USD currency here, so any other options...? Just enlighten me :-)

    • @AccountingStuff
      @AccountingStuff  3 роки тому

      Thanks Mekdes, I'm glad to hear that you're enjoying these videos. The website is set to USD but it still accepts foreign cards or PayPal. Have a great weekend!

  • @ronjobs2359
    @ronjobs2359 5 років тому +1

    Hi james, i have a question how do we deal with bank loans in cash basis of accounting

    • @AccountingStuff
      @AccountingStuff  5 років тому

      Hey Ron, good question. Here are my thoughts...
      I would think that the initial entry of the bank loan shouldn't affect the income statement at all (since it is a loan, not revenue). It should be recognised on the balance sheet as Cash (an asset) and a Bank Loan (a liability). The interest payments should be recognised as an expense in the Income Statement when they are paid out, which would also decrease Cash in the balance sheet.
      Does that help?

    • @ronjobs2359
      @ronjobs2359 5 років тому

      @@AccountingStuff thanks a lot james, Now i got it if a client pays me advance it will be recorded as a liablitiy first in accrual basis but under cash basis it will recorded as an income directly ..Am i right?

    • @AccountingStuff
      @AccountingStuff  5 років тому

      @@ronjobs2359 Correct. If the client pays you in advance then you would treat it as deferred income (a liability) under the accrual basis, or as income under the cash basis.

    • @ronjobs2359
      @ronjobs2359 5 років тому

      @@AccountingStuff thanks a lot once again, i would definitely recommend your channel to others.Accounting Stuff you got my attention.

    • @AccountingStuff
      @AccountingStuff  5 років тому

      @@ronjobs2359 No worries mate!

  • @RS-dg3fq
    @RS-dg3fq 5 років тому +1

    Love your finger wagging. Cool video cheers.

  • @hainguyen666
    @hainguyen666 4 роки тому

    Great

  • @tatiana9723
    @tatiana9723 4 роки тому

    In which book should this be recorded?

    • @AccountingStuff
      @AccountingStuff  4 роки тому +1

      If you're cash accounting then you would probably be using a 3 or multi column cash ledger

  • @hassanalinasir6770
    @hassanalinasir6770 5 років тому

    sir please make video on reconciliation statement for micro finance bank ..

    • @AccountingStuff
      @AccountingStuff  5 років тому

      Hey mate, I've made a video showing how to do a bank reconciliation... ua-cam.com/video/zhmO3DM3YiY/v-deo.html
      Let me know if that helps?

  • @ianhebert91
    @ianhebert91 5 років тому +2

    Did you learn accounting from the guy in Community? I was expecting a white board and you open up the video with you on a rooftop carbeing a friggin diem

    • @AccountingStuff
      @AccountingStuff  5 років тому

      Haha, it was a nice day and I fancied getting outside. Haven't actually seen community but I hear it's good!

  • @westy2302
    @westy2302 3 роки тому

    How did you work out the mark-up using a decimal place? If I times £10 by 1.5, I get £15.........

    • @mraaron4147
      @mraaron4147 Рік тому

      150% on £10 = £15. Mark up is profit. so £10 cost + £15 profit = £25 revenue

  • @peterbradshaw8018
    @peterbradshaw8018 4 роки тому

    Up until recently most Commonwealth governments used cash accounting methods for recording transactions.

  • @shivarajput6549
    @shivarajput6549 6 років тому +1

    Plz make video on royalty accounts

    • @AccountingStuff
      @AccountingStuff  6 років тому +1

      Sure thing Shiva!

    • @shivarajput6549
      @shivarajput6549 6 років тому +1

      @@AccountingStuff Yeah! But can you make it as a series like a chapter which consist some numerical questions and explaination and types of royalty etc

    • @AccountingStuff
      @AccountingStuff  6 років тому +1

      I will look into doing that. Thanks for the suggestion!

  • @Halloitsme19
    @Halloitsme19 4 роки тому +1

    Dude its as if he's reading my mind when im watching videos i was kinda confused with the debit and credit terms

  • @swetavijayan160
    @swetavijayan160 5 місяців тому

    why is 'income received in advance' not recorded on cash basis of accounting?

    • @AccountingStuff
      @AccountingStuff  5 місяців тому

      Do you mean 'cash received in advance'? I explain in this video... ua-cam.com/video/F1zNQ1wga7o/v-deo.html

    • @swetavijayan160
      @swetavijayan160 5 місяців тому

      @@AccountingStuff thanks

    • @AccountingStuff
      @AccountingStuff  5 місяців тому

      @@swetavijayan160 You're very welcome :)

  • @natbrown1974
    @natbrown1974 9 днів тому

    Where does the invoice issued to a customer get coded if it is being paid on a future date? Can't be revenue yet... So where does it go? 😅

    • @AccountingStuff
      @AccountingStuff  8 днів тому +1

      If the goods or services have already been delivered or provided then it would be coded to a Revenue account. If they're to be provided in the future then it would go to Unearned Revenue (a Liability) on the Balance Sheet.

    • @natbrown1974
      @natbrown1974 8 днів тому

      @AccountingStuff ahhh that makes sense. Thank you!

    • @AccountingStuff
      @AccountingStuff  8 днів тому

      @@natbrown1974 No problem :)

  • @pilliprakash-q6l
    @pilliprakash-q6l 9 місяців тому

    could you make a video on cash book plsssssssssssssssssssssssssssssssssssssss?

  • @Austin-wh4yi
    @Austin-wh4yi 5 років тому +1

    Oh damn you have an English accent but you live in Vancouver? I guess they don't call it British Columbia for nothing, lots of Brits here.

    • @AccountingStuff
      @AccountingStuff  5 років тому

      Vancouver is so beautiful, it's every Brit's dream to come out here

  • @anhlenguyen404
    @anhlenguyen404 Рік тому