Tira,
But this is the problem…Shopify should know what this means. Its accounting 101 and I’m going to guess that well over 50% of your users use this form of accounting.
There are two basic forms of accounting ACCRUAL based and CASH based.
Cash based accounting means exactly what the term implies. Receive cash…report cash, sell a gift card, report that sale. The main difference is the timing of when revenue and expenses are recognized. Cash based accounting has an immediate recognition of revenue and expenses, while accrual based accounting is based on anticipated revenue and expenses. The vast majority of small retail shops use cash accounting.