Accrual vs. Cash Accounting in Real Estate


Exoedge1019

Uploaded on Mar 21, 2025

Category Business

The presentation "Accrual vs. Cash Accounting in Real Estate" by EXO Edge provides a clear comparison between the two accounting methods and their impact on property management. It begins with an introduction to cash accounting, which records income and expenses only when cash is exchanged, and accrual accounting, which recognizes transactions when they are earned or incurred, regardless of cash flow.

Category Business

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Accrual vs. Cash Accounting in Real Estate

Accrual vs. Cash Accounting in Real Estate Understanding Key Differences & Impact on Property Management Presented by: EXO Edge What Are Accrual and Cash Accounting? Cash Accounting: Records income and expenses when cash is received or paid. Accrual Accounting: Records income when earned and expenses when incurred, regardless of cash flow. Key Question: Which method is better for property management firms? Choosing the Right Method for Real Estate Small landlords & independent investors → Cash accounting for simplicity Large property management firms & businesses → Accrual accounting for accuracy Regulatory & Tax Considerations: Many firms must use accrual per GAAP standards EXO Edge Expertise: Helping real estate firms optimize their accounting approach Thank You! www.exoedge.com