Receipts and payments accounting: Difference between revisions
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''Financial reporting''. | ''Financial reporting''. | ||
Receipts and payments accounting is a very simple basis of financial reporting, used only | Receipts and payments accounting is a very simple basis of financial reporting, used only by very small and financially unsophisticated organisations. | ||
For example, not-for-profit members clubs. | For example, not-for-profit members clubs. | ||
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* [[Financial reporting]] | * [[Financial reporting]] | ||
* [[Financial statements]] | * [[Financial statements]] | ||
* [[Not-for-profit]] | |||
* [[Receipts and disbursements method]] | * [[Receipts and disbursements method]] | ||
* [[True and fair view]] | * [[True and fair view]] | ||
Revision as of 12:41, 16 September 2020
Financial reporting.
Receipts and payments accounting is a very simple basis of financial reporting, used only by 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.
