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Level 1

How to handle notes payable for CASH BASIS accounting

It is my understanding that since CASH BASIS is not GAAP, Notes Payable do not belong on the Balance Sheet. How do I properly code the cash received and payments made since this affect Cash in/out and net income total.

2 Comments
Level 15

Notes Payable always belong on the Balance Sheet. Accrual...

Notes Payable always belong on the Balance Sheet.

Accrual Vs Cash basis has to do with Revenue and Expense.

Loans are not part of Sched C tax reporting, but they belong on any balance sheet for the entity that has them.


Level 15

Oh, for this part: "affect Cash in/out and net income tot...

Oh, for this part: "affect Cash in/out and net income total."


Debt payment never affects Income.


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