Generally, an advantage to using the cash method of accounting, as compared to the accrual method, is that under the cash method, income is not recognized until it is collected rather than being taxed as soon as the taxpayer has the right to collect the income.

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Under the cash method, income is only recognized when it is received, such as when a payment is made or a check is deposited. This means that the taxpayer is not taxed on income until they actually have possession of the funds. In contrast, under the accrual method, income is recognized when it is earned, regardless of when payment is received. This can result in taxpayers being taxed on income that they have not yet received.

Generally, an Advantage to Using the Cash Method of Accounting