Accounting on a cash basis is a method in which revenue is not recorded until cash is received, and expenses are not recorded until cash is disbursed. So in the case of a credit sale or a credit purchase, you do not record the transaction in the accounting system until you receive or disburse the related cash. The cash basis is used mainly by individuals for income tax purposes.
Accounting on an accrual basis is a method in which revenue is recorded when earned, and expenses are recorded when incurred – without regard to the timing of related cash receipts and expenditures. So in the case of a credit sale or a credit purchase, the related revenue or expense is recorded at the time of the sale or purchase, even if no cash was received or paid. Most businesses are on the accrual basis.
Observe that with cash basis accounting, there are no accounts receivable or accounts payable since no sales or purchases are recorded for which the related cash has not been received or paid. In other words, the system does not reflect any amounts owed by buyers (customers and/or members) to your organization, nor any amounts your organization owes to vendors. So if you have credit sales and/or credit purchases, the cash basis of accounting does not accurately reflect operations. For this reason, the accrual basis is preferred.
The accounting basis that you use, cash or accrual, is not a feature of the CC-Assist; rather, it is a policy decision that your organization makes.