Receipts and payments accounting

Financial reporting.

Receipts and payments accounting is a very simple basis of financial reporting, used only for very small and financially unsophisticated organisations.

For example, not-for-profit members clubs.

It is based on cash receipts and payments only.

It is sometimes known as cash accounting.

By contrast, the overwhelming majority of commercial and larger organisations report on the basis of accruals accounting, in order to present a true and fair view in their financial statements.

See also

• Accrual
• Accruals accounting
• Accruals concept
• Financial reporting
• Financial statements
• Receipts and disbursements method
• True and fair view