By Brandon Seigel, Chief Problem Solver · August 14, 2026 · 6 min read
Cash basis vs. accrual basis
A cash-basis profit and loss shows money when it lands. An accrual view shows revenue when the care was delivered. You need both: cash tells you what you can spend, accrual tells you how the business actually performed.
The billing lag trap
A strong month of visits can look like a weak month of cash — and a slow month can look great because last month's claims just paid. Owners who make hiring or spending decisions on one month of cash often get it wrong.
Billing speed is a cash flow strategy
Daily claim submission and daily payment posting shrink the lag between care and cash. Denials worked quickly mean fewer dollars stuck in A/R. That's why we treat your revenue cycle as your cash flow engine.
Quick answers
Should a therapy practice use cash or accrual accounting?
Many use cash basis for taxes, but owners should also review performance on an accrual view so insurance payment lag doesn't distort decisions. Talk with your CPA.
Sources and further reading
See exactly what's included in our medical billing services for therapy practices, how our percentage-of-collections pricing works, or browse common questions from practice owners.
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