Molly is a sole owner of a Melbourne based Accounting Firm. She has three managers, two directors and nine senior staff working for her.
What is the appropriate basis for Molly to return her income? Cash or accruals?
I say accruals as she is not dependant on her own personal exertion to earn an income. Also, the size of her firm would have substantial expenditure costs, which would warrant accrual based accounting.