When will profit figures be the same under Cash and Accrual accounting?

Profit figures will be the same under Cash and Accrual accounting over the life of the business because both methods ultimately recognize the same income and expenses, albeit at different times. Cash accounting records income and expenses when cash is actually received or paid, while Accrual accounting recognizes revenues and expenses when they are earned or incurred, regardless of cash flow.

Over the long term, all expected cash inflows and outflows are anticipated, ensuring that total revenues and total expenses align. This means that although the timing may differ in the short term (leading to varying profit figures at given periods), over the life of the business, the cumulative results will converge. This allows for a complete representation of the business's financial performance over time, rather than isolated snapshots that may look different based on the timing of transactions.

In contrast, looking at specifics like the end of each accounting period or particular fiscal years fails to account for the cumulative nature of profit recognition, and preparing financial statements does not inherently guarantee that profit figures will match due to timing differences inherent in the two accounting methods within those specific moments.