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.
@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:
Go to Edit.
Select Reports and Graphs.
Under Company Preferences, select any accounting method you want in viewing your reports.
Let me share with you the difference between Cash and Accrual basis of accounting in QuickBooks Desktop.
When you choose Cash basis, the report shows the income or expenses based on the payment date of your invoices and bills. While the Accrual basis shows the income and expenses based on when you sent your invoices or got your bills.
Also, there are several reasons why the cash vs accrual summary has a difference:
Invoices are paid and deposited to Undeposited Funds
Some payments were not applied to invoices properly
Missing purchase transaction
Number of paid invoice vs opened invoice varies
This way, you can check and run reports to see the difference.