accrual/cash basis reports

The difference between cash and accrual is whether or not the bills entered have been paid.  Accrual counts them all, cash basis only counts what has been paid

the same concept is true for invoices to customers, if it is paid cash basis counts it, accrual counts the income whether paid or not

So yes it is possible for the two basis reports to be the same, usually they are different though because of the reasons above

Hi Rustler,

thanks for your reply.

That makes sense and we only enter bills when we pay them but I was wondering if end-of-year adjusting entries should make a difference between cash basis and accrual basis reports, and in my case they don't.

RE: I was wondering if end-of-year adjusting entries should make a difference between cash basis and accrual basis reports, and in my case they don't.

The only transactions that are accounted for differently on a cash bases are those recorded in your AP and AR accounts. This can include may odd cases, but usually the transactions are customer Invoices, Credit Memos, Payments received, and vendor Bills, Bill Credits, and Bill payments checks.

Journals, unless you use an AR or AP account on them, are treated the same way on a cash and accrual financial statements.