If you don't have a compelling reason to use the accrual method, you are better served sticking with cash-basis accounting for simplicity, if for no other reason. From a Tax perspective I don't see any benefit to switching to the accrual accounting method.
The difference between cash and accrual accounting lies in the timing of when sales and purchases are recorded in your accounts. Cash accounting recognizes revenue and expenses only when money changes hands, but accrual accounting recognizes revenue when it's earned, and expenses when they're billed (but not paid).
Accrual Basis
This basis of accounting means that income and expenses are recognized when they accrue. Income is reported when the work is completed. Expenses are reported when the company receives goods or services. Both are reported regardless of money ever changing hands. Under this basis, a taxpayer could pay taxes on money never received.
Cash Basis
Cash basis reporting means that you report your income and expenses when they are received and paid respectively. Income is reported once the cash is received from the customer. Expenses are reported when paid (via check, credit card, or cash). Most small businesses report under the cash basis reporting method. There are some businesses that either choose to report or are required to report under the accrual method.
