# Cash Basis

The **cash basis** records revenue when a payment is received and expenses when a payment is made. Unlike the [accrual basis](https://bkper.com/docs/guides/accounting-principles/accounting-methods/accrual-basis.md), you do not track receivables or payables — every transaction reflects actual cash movement.

## Example — a printing company

A printing company buys paper and sells folders, recording each event only when money changes hands.

### The accounts

Because this cash-basis example does not track outstanding receivables or payables, the book only requires accounts for the cash position, income, and expenses.

> **Note**
> In this simplified cash-basis example, there are no supplier or payable timing accounts — expenses are recorded directly when paid. Other liability accounts, such as loans, credit cards, or taxes payable, can still exist in a cash-basis book when they reflect real obligations.
### Recording the transactions

Each transaction corresponds to an actual cash movement:

| Date | Amount | From Account | | To Account | Description |
| --- | --- | --- | --- | --- | --- |
| 22/07 | 300.00 | Bank Account | >> | Papers | Expenses with papers |
| 26/07 | 30.00 | Client | >> | Bank Account | Client's payment |

The purchase is recorded on the date the bank pays, and the sale is recorded on the date the client's payment arrives — not when the order is placed or the invoice issued.