QuickBooksHelpIntuit
Differentiate Cash and Accrual basis
by Intuit• Updated 4 months ago
Learn the difference between Cash and Accrual basis and how to set them as preferences in QuickBooks Desktop for Windows.
Accrual basis
- In this accounting method, the time when you enter a transaction and the time when you actually pay or receive cash may be two separate events.
- An accrual basis report shows income regardless of whether your customers have paid your invoices and expenses regardless of whether you have paid all your bills.
Cash basis
- A bookkeeping method in which you regard income or expenses as occurring at the time you actually receive a payment or pay a bill.
- A cash basis report only shows income if you have received cash and expenses if you have paid cash.
Report preferences
- Summary reports can be on a cash or accrual basis. They summarize groups of transactions and usually have the word Summary in their titles.
- Detail reports list individual transactions. They always default to accrual basis when you create them from the Reports menu.
To set your preferences:
- Log in to your file as the Administrator. Make sure you are in Single-User Mode.
- Go to the Edit menu, then select Preferences.
- Select Reports & Graphs, then go to the Company Preferences tab.
- In the Summary Report Basis section, select Accrual or Cash.
- Select OK.
Important:
|
Sign in now for personalized help
See articles customized for your product and join our large community of QuickBooks users.
More like this
- How Cash and Accrual accounting affect sales taxby QuickBooks•57•Updated January 15, 2024
- Choose between cash and accrual accounting methods in QuickBooks Onlineby QuickBooks•227•Updated June 21, 2024
- Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Onlineby QuickBooks•19•Updated February 16, 2024
- Fix a Balance Sheet that's out of balanceby QuickBooks•Updated June 18, 2024