Startups live and die by cashflow. It seems like 99% would therefore want to use cash basis accounting (it's dangerous to plan by revenue of receivables that may never come). When then is it appropriate for a startup to elect to use accrual-basis accounting?
You should always do both forms of accounting.<p>Cash accounting tells you if you're going to be in business tomorrow. Accrual accounting tells you if you're going to be in business next year. Not doing cash accounting will cause problems sooner; but either of them will cause problems eventually if ignored.