> For the complete documentation index, see [llms.txt](https://docs.crewcost.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.crewcost.com/documentation/general-settings/choose-an-accounting-method.md).

# Choose an Accounting Method

Learn how to select the accounting method that matches how your business records revenue and expenses. Whether you use cash or accrual accounting, choosing the right method ensures your financial reports and project data stay accurate and aligned with your workflow.

To change your company’s accounting method:

1. On the left menu, go to **Settings > Other > Accounting method.**
2. Choose your company’s accounting method:

<table><thead><tr><th width="138">Field</th><th>Descript</th></tr></thead><tbody><tr><td><strong>Accrual</strong></td><td>In this method, revenue and expenses are recorded when earned or incurred, regardless of when the cash is received or paid. This provides a more accurate picture of a company's financial health, including all transactions related to a given period, not just those where money changed hands.</td></tr><tr><td><strong>Cash</strong></td><td>This method records revenue and expenses only when cash is received or paid. It's straightforward and often used by smaller businesses or individuals. For example, using this method, you record income when you receive payment and expenses when you pay a bill.</td></tr></tbody></table>

3. Select **Save** to complete the process.

<figure><img src="/files/xlx6EMyReEN803J4h2aZ" alt=""><figcaption></figcaption></figure>

Once your accounting method is set, you’re ready to keep building a financial structure that works for your business.&#x20;

#### See also

Keep exploring our platform by taking the next step:&#x20;

* [Managing Chart of Accounts](/documentation/accounting-configuration/manage-the-chart-of-accounts.md): Guide to viewing and managing the General Ledger accounts and registers.
* [Customizing the Chart of Accounts Structure](/documentation/accounting-configuration/customize-the-chart-of-accounts-structure.md): Guide to modifying the numbering scheme, hierarchical setup, and custom reporting expense buckets.


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Field	Descript
Accrual	In this method, revenue and expenses are recorded when earned or incurred, regardless of when the cash is received or paid. This provides a more accurate picture of a company's financial health, including all transactions related to a given period, not just those where money changed hands.
Cash	This method records revenue and expenses only when cash is received or paid. It's straightforward and often used by smaller businesses or individuals. For example, using this method, you record income when you receive payment and expenses when you pay a bill.