Which accounting method does your law firm use? There are two options when it comes to accounting methods: cash basis or accrual basis. The primary difference between these two methods is the point at which revenue is recognized. Cash basis means the income is recognized at the time of receipt, and bill payments are recorded when the bills are paid. Accrual basis means a sale is recognized at the time of sale, even if the payment isn’t made for 90 days. The same goes for bill