Accounting Types refer to the unique ways businesses can keep track of their financial transactions. There are four basic types of accounting: cash-based, accrual-based, hybrid, and non-profit. Cash-based accounting is the most straightforward system; it tracks income as it is received and expenses as they are paid. Accrual-based accounting allows business owners to recognize revenue before they actually receive it, and likewise classify expenses even if they haven’t been paid yet. Hybrid accounting combines both cash and accrual methods in order to provide business owners with a more detailed picture of their financial situation. Finally, non-profit accounting focuses on the nonprofit’s mission, with an emphasis on tracking donations and expenditures for tax purposes. It’s important for businesses to understand these different accounting types so that they can make informed decisions when managing their financial information.