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Accrual and cash-based accounting produce fundamentally different financial figures from the same business activity, and the rules governing which method businesses must use vary sharply across the US, UK, and EU. The US permits cash-basis for most small businesses under a $31M gross-receipts threshold, while the UK made cash-basis the default for sole traders in 2024, and Germany mandates double-entry accrual above €800K revenue. Developers building accounting integrations must detect and handle the accounting basis correctly or risk producing misleading risk models, forecasts, and dashboards.

• •Cash vs accrual accounting changes what ledger numbers mean — same business, different revenue figures per period
• •US allows cash-basis below $31M gross receipts; UK defaults to cash-basis for sole traders since April 2024; Germany mandates accrual above €800K revenue
• •API integrations must account for the customer's accounting method or risk building analytics on incorrect assumptions

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