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Level 2

Cash vs. Accrual Setting

I am noticing in QuickBooks that under accrual method I show revenue, however under cash I am showing $0 revenue. Is it possible this QuickBooks file is corrupt? I do see bank deposits being applied to the A/R, so I am a bit confused as to why this may occur.

2 Comments
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Anonymous
Not applicable

Cash vs. Accrual Setting

This likely means you haven't recorded payments against your open invoices in the period.  Open invoices won't show up on a cash basis income statement, and neither will un-applied payments.

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QuickBooks Team

Cash vs. Accrual Setting

Hello there, @globetreader569.

 

@Anonymous is correct! In QuickBooks Desktop, there are two ways of accounting method, accrual and cash. The data displayed on your reports depends on the preferences you've set in the system and the data you've recorded.

 

Here's how to review your account's preferences:

  1. Go to Edit.
  2. Choose Preferences.
  3. Select Reports and Graphs.
  4. Under Company Preferences, select any accounting method you want in viewing your reports.
  5. Click OK.

That's it! For additional insights, you may also check out the article about the 5 different account receivable workflows to ensure your transactions are recorded and applied properly. 

 

Stay in touch if you have other questions about managing your transactions and reports in your QuickBooks account. I'm always here to help.

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