Accrural Accounting Question

[ekuemoah]

When I record bills for my small business, do I record the bills on the date I receive the bill or the billing date on the statement?

When I count the trade terms(ex. 2/10), do I count from the billing date and not the date I received the bill?

Thank You

[jamesray50]

With accrual method accounting you record the expense the day you incur the expense. The date on the bill is the date you would start counting for your terms. In the body of the bill should be the date of the expense. Most small businesses use the cash method, why are you using accrual?