QuickBooksHelpIntuit
Differentiate Cash and Accrual basis
by Intuit• Updated 1 year 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
- Choose between cash and accrual accounting methods in QuickBooks Onlineby QuickBooks•3391•Updated February 01, 2024
- Unapplied cash payment income on your profit and lossby QuickBooks•2517•Updated March 28, 2024
- What's Unapplied Cash Payment?by QuickBooks•641•Updated January 29, 2024
- Set up and use petty cash in QuickBooks Onlineby QuickBooks•812•Updated 1 week ago
- Resolve accounts receivable or accounts payable balances on a cash basis balance sheet in QuickBooks Onlineby QuickBooks•405•Updated January 15, 2024