Cash accounting records transactions when cash changes hands, while accrual accounting records them when earned or incurred for a clearer financial picture.The income statement shows profitability, the balance sheet reflects financial position, and the cash flow statement tracks liquidity.Revenue covers all business income, while expenses track costs in categories like payroll, rent, marketing, and supplies.Small businesses must manage income, sales, and payroll taxes with accurate records for compliance and deductions.Bookkeeping records daily transactions, while accounting analyzes and reports financial data for planning and compliance