Cash method of accounting

Cash method of accounting — «кассовый метод бухгалтерского учёта» — an accounting method where income is counted when cash is actually received and deductions claimed when expenses are actually paid.

In contrast, under the accrual method of accounting — «учет по методу начисления» — revenues are reported when they are earned, even if the cash is not received, and expenses — when they occur, whether the payment is made or not.

In general, Russian companies must use the accrual method. The cash method may be elected by small and medium enterprises (with average monthly revenues less than app. $10,000) (art. 273 Tax Code of the Russian Federation).