Balance Sheet Report in CASH basis, paid or unpaid inventory?

Hi there, @dal1cas2.

Let me share with you the difference between Cash and Accrual basis of accounting and help you resolve your concern.

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.

When selecting the Accounting method for your reports, you need to click on Run report. But if you've already done it, try toggling it again and click on the Run report button. This way, your report gets updated. 

Feel free to read this article for further information: Choose Between Cash and Accrual Accounting Methods in Reports.

If there's anything you need help with, please let me know.

Unfortunately this did not answer my question. What I need to know is when I run a Balance Sheet Report in Cash basis for Inventory Asset -1, should it show inventory that has been invoiced and paid or inventory that has been invoiced and unpaid? Right now it is showing both and neither & i even have an invoice in which only half of the inventory on it is showing. I need to which I need to work on resolving, the paid or unpaid inventory?

@dal1cas2

In QuickBooks Online, on a Balance Sheet report when running in Cash basis for Inventory Asset account, it should not show any balance at all (the same way as Accounts Receivable account). If you're seeing the amount on a cash basis report for Inventory Asset account, there is something wrong with how the inventory transactions were entered in QBO. To review the details, you can click the balance amount you're seeing on the B/S for that account, and change the Report period of the report to "All Dates" and run the report.

I'd also suggest try it out on QBO demo test-drive file. It will show how it should work.
https://qbo.intuit.com/redir/testdrive/

Hope this helps!

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@dal1cas2 wrote:

 

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QBO does not show any inventory on hand for a cash basis balance sheet; it is all expensed when paid for. You should really keep books and file taxes on the accrual basis if you carry inventory. If you want to file on the cash basis, you will have to enter the closing inventory on hand manually in the tax return. But if you file schedule C, there is no balance sheet required, just a deduction of the ending on hand inventory from Purchases (and addition of last year's on hand).  You can run an accrual balance sheet to get the ending on hand inventory; but it should really be physically counted.

Not sure why you are mentioning "Inventory Asset -1". That may  indicate a set up problem. There should not be a 1

Am i missing something? or is QBO total crap?

In Australia i run Cash for GST and Income tax.  I buy goods witch are stock and should on the balance sheet, and be pulled off as a COGS when sold.

This software is total crap.  My accounts are so screwed up its pathetic.

Get the message Quickbooks....cash accounting in Australia is not a milk bar receiving cash in hand for every sale.. its an accounting term

Total crap 1 star

Good day, andrewtanand.

I'm here to help and provide you additional information about the balance sheet and COGS in QuickBooks Online.

As our Community Backer Malcolm Ziman stated above, QuickBooks Online does not show any inventory on hand for a cash basis balance sheet; it is all expensed when paid for.

QuickBooks Online in the US works the same way with QuickBooks Online in Australia.

You may find these articles helpful:

• Impacts of inventory tracking on balance sheet and profit & loss reports.
• How to set up Stock tracking.

I'm still here if you have more questions about the balance sheet and COGS. Have a good one.

It is my understanding that QuickBooks Desktop takes the view that if you are a small business with inventory, your cash basis reports will show inventory but not Accounts Receivable or Accounts Payable.  As this is my understanding, why is QuickBooks online taking a difference position and is there a way to adjust the reports so that Inventory shows up on the cash basis reports?

Hi there, @djhoffma.

Please allow me to join the thread and share a little more information about running reports in QuickBooks Online (QBO).

As of now, this is how QBO works, the article provided by my colleague RoseMarjoirieA should explain you the detailed information.

However, an update will be posted as soon as there's an option to run reports so that inventory shows on a cash basis reports. To stay in touch with the latest QBO updates, you may visit our QuickBooks Blog.

Also, to learn more about the difference between cash and accrual basis in QBO and QBDT, you may check these articles:

• Choose between cash and accrual accounting methods in reports
• Differentiate Cash and Accrual basis

Don't hesitate to add a comment below if you have any other questions about running reports. I'd be glad to help you!

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@djhoffma wrote:

It is my understanding that QuickBooks Desktop takes the view that if you are a small business with inventory, your cash basis reports will show inventory but not Accounts Receivable or Accounts Payable.  

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Just because it's cash basis does not always mean there is no AR or AP.

If you buy inventory on credit, then AP should show on the balance sheet even though it's cash basis, because inventory is an asset,  just like if you bought a fixed asset on credit, it should show, against the liability.  QBO is wrong in the way it handles this. They say that you should run an accrual basis BS to get the inventory, and then record that in the tax prep software I guess. 

Yes. QBO is total crap. I am a CPA  with 35 years of public accounting experience in the USA.

Has there been any update to QBO in order to show inventory on the cash basis balance sheet?

Thanks for coming back, bab4.

For now, we don't have a specific time frame as to when your product suggestion to be added in QuickBooks Online (QBO). You can rest assured that this is being looked into.

As our Community Backer stated above, the report will not show any inventory on hand for a cash basis balance sheet since it is all-expense when paid for. With that said, you'll want to export the Balance Sheet report to Excel. Then, add the inventory to come up with the report you need.

You can visit our QuickBooks Blog page to be updated with the latest news and updates including some product improvements.

To learn more about the impact of inventory tracking on your report, please refer to this article: Impacts of inventory tracking on balance sheet and profit & loss reports.

Visit the Community if you need a hand filing your year-end forms. I'll be here to help.