Differences Between Cash and Accrual Accounting for Small Business

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Differences Between Cash and Accrual Accounting for Small Business


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How do credit card accounts work when using these two methods?  If one is doing a "cash" approach;  if one makes a purchase with a credit card in November, is the expense incurred in November when the purchase was made, or in December when the Credit Card bill is paid?  Further, using an accrual approach, perhaps multiple expenses were incurred on the CC in November, but if only a portion of the CC bill is paid in December, how does one know which of the Nov purchase's are now being paid?  Please share with my any insight you have regarding this.

allenschneider