I have been looking at changing from the accrual basis accounting to the cash basis accounting for this year forwards. I am a sole trader below the vat threshold. I do not have any capital allowances. From what I can see, any stock I buy in the current year is accounted for in the current year, even if it remains unsold at year end. This is attractive to me as I am introducing new lines and my levels of stock are likely to increase dramatically as I have to take fairly expensive MOQs. I can also carry forward any trading losses to the following years. Have I got this right?