Accountant: So, you wanted to talk about accounting methods? Client: Yes. I’m not sure if I should use cash basis or accrual basis accounting. Accountant: OK. Well, cash basis accounting is good for tracking cash ow. Client: That makes sense. It’s because you only 1record transactions when cash is exchanged, right. Accountant: Exactly. But accrual basis accounting is better for 2 matching revenues and expenses. Client: What do you mean by that? Accountant: Well, 3 there are delays with cash flow. You might 4 make a sale but not receive cash for a month. Client: Oh, I see. But with accrual basis accounting I could record that 5transaction immediately . Accountant: That's right. So, 6 what do you think ? Client: Well, I'd rather 7 keep an eye on cash flow. Let's use cash basis accounting