Dan,
This is way off topic, but your comment of 23 years made me think of of the changes you have seen with the DMARD's/biologics in your practice. I wonder what Renoir would have produced if you could have treated him. I was thinking of this as studying the MKSAP Rheumatology booklet, when was the last time you saw a laterally deviated disfigured rheumatoid patient? I can't remember the last time.
Back to the matter at hand. I lifted this from the IRS site to help define the difference.
Accrual method. If you use the accrual method of accounting, you generally report income as you earn it. You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income.
If you qualify, you can use the nonaccrual-experience method of accounting discussed later. Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect.
Cash method. If you use the cash method of accounting, you generally report income when you receive payment. You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. For example, a cash basis architect cannot claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income.
