I currently use the Cash Basis for my accounting. But I am finding out as years go on I may have to switch to Accrual because some of my clients use Accrual method. So when i get the w-2 at the end of the year, the work I did for them in December shows December 2011 taxes, But I am marking it has income received in January because thats when I received the check. I almost want to use the Cash basis for my expenses and the Accrual Method for my income, but it confuses me in the long run, So I may have to just change everything to Accrual. What does everyone else do?