| Meaning |
Records money when cash is received or paid |
Records revenue when earned, expenses when incurred |
| Focus Area |
What's in your bank today |
The full picture — past and future obligations |
| Time Orientation |
Rearview mirror — what already happened |
Windshield — what's earned and what's coming |
| Best For |
Freelancers, early-stage startups, simple businesses |
SMBs scaling, funded startups, investor-ready companies |
| Real Example |
Invoice sent Dec, paid Feb → recorded in February |
Invoice sent Dec, paid Feb → recorded in December |
| Output |
Cash position only |
P&L, Balance Sheet, Cash Flow Statement |
| Risk |
Look profitable — but heading toward a cash crisis |
More complex — but no financial surprises |