To manage your books, you need to decide on an accounting system. You can use either cash-basis or accrual accounting. Cash-basis accounting is a simple way to manage your books. With cash-basis accounting, you only record transactions when you physically make or receive a payment. With accrual accounting, you must record money whenever a transaction takes place, even if you don’t physically give or receive money. Consider using accrual accounting if you offer credit to customers.