RE: You purchase a fixed asset from a vendor and create a bill in accounts payable using quickbooks online. The fixed asset does not show up on the balance sheet when run on cash basis...QB desktop does show a fixed asset purchased via A/P, why does QB Online not do the same.
That seems like a bug to me. QB Desktop is correct when it shows the asset, because fixed asset balances have nothing to do with cash / accrual accounting. They just are what they are, like a bank balance.
RE: Is there a work around for this, as it does not matter when you pay for the asset, it should be booked the day you purchased and placed into service.
Use QuickBooks Desktop. In this and other ways, it is consistently better than QB Online.
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I did a little digging and it gets even worse:
When using QB Online, if I write a standard check from a bank account to the AP account, then when I run the balance sheet on a cash basis, the bank account balance does not change, which is good. However, (of all things) "Net Income" changes on the balance sheet by the amount of the check, which is completely inappropriate because the check does not change income in any way.
Also, if I run a detailed cash basis Profit and Loss in this case, I see a line item "Unapplied Cash Bill Payment Expense" for the amount of the check, which is complete nonsense. First, the check isn't a bill payment, and second, if and when I apply it to a bill, who is to say the bill will be for an expense? Perhaps I'll be buying inventory, or some other asset that is not an expense.
Based on this I'd run, run fast from QuickBooks Online if I was using it. It's doubtful that your reports are accurate. If these two simple cases throw them off I wonder what else will?!?
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Update: It gets worse!
If I continue with the scenario above and record a bill for the purchase of an asset on a future date, after the check was written, then apply the check to it, the cash basis balance sheet continues to change Net Income from the check date until the date before following bill. Then, on the bill date, the net income changes back to what it should be, excluding the check from income. This is very bad.
Really Intuit? A check, written from a bank account and paying a bill with a later date, a bill that does not use income/expense accounts, changes the Net Income on a cash basis P&L and Balance Sheet? Really? What sort of accounting Fantasyland is this?
Intuit, do you realize that in this case you are adding expenses to the P&L that do not exist?
