I need to change from cash to accrual accounting as of 12/31/24.

You should close the book first.

Close your books in QuickBooks Online

Thanks for the suggestion.  I wish it was that easy.  I won't be able to close the books until the final tax adjustments are made, which will be at least another month if not longer. I need to adjust to accrual back to January and can't wait any longer.

Unfortunately, I can't close the books until I have the final tax adjustments, which won't be for a bit. I need to adjust to accrual back to January 1 and can't put off monthly closes any longer.

Hi @TK71, I agree with @Chrea. You should close the books before changing the accounting method so that it won't affect your historical information. It helps prevent discrepancies and confusion that could arise from mixing different accounting practices.

For additional details on the distinctions between Cash and Accrual methods in QuickBooks Online and instructions on switching between them, please refer to this article: Choose between cash and accrual accounting methods in QuickBooks Online.

Moreover, for more details on setting up your payroll accounting settings to accurately monitor payroll transactions, see this article for guidance: Change your accounting preferences in QuickBooks Online Payroll.

I'm here if you have any more questions about changing your cash to accrual accounting, leave a comment below and tag me. I'll make sure to follow up with you.

@TK71 

You can switch back and forth between cash and accrual anytime.  Changing your accounting method only changes the default method used for reports, it doesn't make permanent changes to the underlying data.