What are the differences and links between the pay-as-you-go Implementation System and the accrual system?

I. Accrual basis (accrual basis, accrual basis)
1. The accrual system, also known as the receivables and payables system, refers to the fact that in accounting, the cost has been realized and has occurred, the current income and current cost should be determined based on the current-period burden.
2. When dealing with accounting services based on the accrual principle, the following two points should be implemented. 1. Any amount actually incurred in the current period and shall be the income and expenses of the current period, whether received or paid, shall be treated as the income and expenses of the current period; 2, any income and fee which shall not belong to the current period shall not be processed as the income and fee of the current period even if the payment has been received or paid.
Therefore, when the accrual system is adopted, you must adjust the account items in the account book records at the end of the accounting period so that the income and expenses of the current period can have a reasonable ratio, in this way, you can calculate the profit and loss of an enterprise in the current period correctly.
3. Advantages and applicability. The accrual system can reflect the current operating income and expenditure, and calculate and determine the operating results of an enterprise more accurately. Therefore, it is widely used in enterprise accounting.

II. Implementation of pay-as-you-go (cash system, cash basis)
1. the implementation of pay-as-you-go is a basis for measuring the two accounting elements of income and cost that correspond to the accrual system. The settlement and payment implementation system, also known as the real-time payment system, refers to the criteria for confirming the current income and current fees based on the actual receipt or payment in accounting.
2. The accounting business should be handled in accordance with the implementation principles of pay-as-you-go. 1. Any income and payment actually received in the current period, whether or not it belongs to the current period, shall be treated as the income and expenses of the current period; 2, any unreceived income and unpaid expenses in the current period shall not be processed as income and expenses of the current period even if they belong to the current period.
Therefore, the settlement system is adopted, and the accounting procedures are relatively simple. The existence of accrued income, billing, pre-paid income, and pre-paid expenses can be ignored in accounting.
3. Disadvantages and applicability. The settlement and payment implementation system cannot correctly calculate and determine the enterprise's current profit and loss, and there is a lack of a reasonable balance and expenditure ratio. Therefore, it is only applicable to enterprises with relatively simple business and small amount of accrued income, billing, pre-paid income, and pre-paid expenses, as well as institutions, institutions, organizations, and other units.

Iii. Differences and links between the pay-as-you-go Implementation System and the accrual system
1. Contact: The purpose of the two is to correctly calculate and determine the company's income, costs, and profit and loss.
2. difference: the main difference between the two is that the criteria for determining income and expenses are different; the requirements for the ratio of income to expenses are different; and the accounting end-of-period handling methods are different; the return results calculated during each accounting period are different; the account settings set during the accounting process are different; their advantages and disadvantages are different; and their applicability are different.