As already mentioned in the previous post cash basis accounting is not available to everyone. Sole traders can use the scheme. Partnerships can use it as long as they are not limited liability. Limited companies cannot use the scheme and there is list of specific kinds of business excluded too – the list is available at HMRC.
Businesses can only enter the scheme if they have turnover of £150,000 or less (£300,000 for Universal Credit claimants). If you have multiple businesses the turnover rule applies to combined turnover and you have to use cash basis for all businesses or none. The threshold is reduced for a part year. Businesses must leave the scheme and use accruals when turnover reaches £300,000.
If you are eligible to use it you then need to think about whether or not it’s suitable for your business – more on suitability.