: Income is recorded when the deal is finalized, even if the cash hasn't been received yet.
: Income is recorded only when actual payments are received from the customer. buy here pay here accounting method
For dealerships, the choice of accounting method is a strategic decision that impacts tax liability and the ability to secure bank financing. Most dealerships must navigate between the Accrual Method (required for inventory and large-scale operations) and the Cash Method (simpler, but often restricted). Primary Accounting Methods Accrual Basis Accounting : : Income is recorded when the deal is