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Established Community Backer ***

Re: Does Your Business Use Cash or Accrual Method Accounting?

Just to be semantically accurate, If you use QB you use accrual accounting. You can choose to report on a cash basis, and/or file income taxes on a cash basis (regardless of the day to day accounting preference). And, as a note of interest, lately there have been some discussions in the learning/support community about the correctness of QBO cash P&L reports when the company has inventory.


That said, I use accrual. I can not see advantage to putting off the earning of income until it is paid. IMO if I am that cash strapped, then I probably need to reevaluate the business model and do something different to get more cash flowing in.