By AnnA Kovchina, CMA & Founder of Ak-counting.com

Businesses must choose between cash basis and accrual basis accounting methods. Cash basis accounting is straightforward, tracking revenues when cash is received and expenses when cash is paid. In contrast, accrual basis accounting offers a more precise representation of a company’s financial status by recording revenues when they are earned and expenses when they are incurred, regardless of actual cash transactions. Generally, you can choose any permitted accounting method when filing your first tax return. However, you must use the method consistently year to year, and it must clearly reflect your income. Many new small businesses initially choose the cash basis as it is easier and quicker, but as companies grow, they may need to convert to the accrual basis.

By AnnA Kovchina, CMA, Ak-counting.com

I believe that all companies benefit from more than just compliance services, but it is critical for engineering companies to have robust project tracking and financial management systems.

Engineering projects often involve complex, long-term engagements that require meticulous monitoring of labor and expenses. Here’s why comprehensive financial management is essential for engineering companies: