Cash vs Accrual Reporting in QuickBooks with Candus Kampfer QBO QB Pro
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- Опубликовано: 3 авг 2024
- Are you reporting cash or accrual and realize it’s the wrong one and need to change it? 🙋♀️ 🙋🏻♂️
Let me explain the difference between Cash vs Accrual basis and how it impacts your reports…
➡️ Why is Cash & Accrual important?
You can choose whether you want to look at reports on Cash or Accrual basis.
➡️ Cash Basis
The moment money is exchanged. They pay you for the products/services or you pay them for the products/services.
➡️ Accrual Basis
At the moment you invoice your customer, or the moment you enter a bill.
➡️ Checking Finances - Desktop
Go to “Reports”
“Company & Financial”
“Profit & Loss Standard”
➡️ Checking Finances - Online
Go to “Reports”
“Profit & Loss”
➡️ Changing Cash or Accrual Settings
Go to “Edit”
“Preferences”
“Reports & Graphs”
Under “Company Preferences”
Choose “Cash” or “Accrual”
Click “OK”
*If you’re not using Invoices or Bills, you’re already using “cash basis” strategies. The reports won’t change even if you switch between cash and accrual because the accrual data is missing.
Timestamps:
0:00 - Intro
0:21 - Using Cash and Accrual
0:47 - Why is this Important?
1:18 - Cash basis
1:35 - Accrual Basis
1:49 - QuickBooks Desktop (Profit & Loss)
3:40 - QuickBooks Online (Profit & Loss)
5:12 - Changing Accrual or Cash settings
6:47 - Final Thoughts
I’d love to hear if this inspired an “aha moment” and if you now realize why your reports may not be pulling properly.
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Thanks! I am starting an internship, and I will be learning to use quickbooks.
Wonderful! Glad the video helped you, Mallory 😊
Have an amazing day!
Elaine - Team Candus
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Somebody is watching over me and helping me, your video appear as a suggestion :) I found out yesterday that in QuickBooks Desktop I'm using the Accrual basis and that my accountant did our taxes as a Cash basis and I have being trying to find out if I need to switch the way I was doing it and how am I going to this, not knowing that you can actually use both and is more useful. Thank you for your help, can't wait to learn much more from your workshop.
That is awesome! Thank you for sharing Kary 🙂
Elaine
Team Candus
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yes i look at these reports :)
Thanks so much.
Yay! Glad it worked for you Nancy.
If you would like to follow her, click the links below ↓
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*Instagram:* instagram.com/candus.kampfer
Have an amazing day 🙂
Elaine - Team Candus
thank you 🌺🌸
You're welcome Ahmed 😃
Thank you for being part of Candus' community!
Elaine-Team Candus
Well done
Yay! Glad it helped you Aram.
If you would like to follow her, click the links below ↓
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*Instagram:* instagram.com/candus.kampfer
Have an amazing day 🙂
Elaine - Team Candus
Thanks for the tips!
Happy they helped :)
Thank you for being a part of our community!
Mckenzie
Team Candus
Thank you for sharing this Candus. Question though - If our QB is set to Accrual by default, how do you extract P&L report under Cash method? We just did that following the steps you showed in the video but the Total Income amount seem to include $$s that are part of the accrual.
Thank you for reaching out Maria 🙂
I'll make sure your question is added to Candus' list of future Tips & Tricks ideas.
If you'd like to make sure you get our weekly tips, you can join here: canduskampfer.com/weeklytips
Have an amazing day!
Elaine
Team Candus
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Under our inventory in QBO our inventory is WAYYYY off under cash vs. Accrual. Accrual is much more accurate but our accountant files our taxes based on cash. What are we doing wrong?
Thank you for watching our videos 😊
I will add your question to the list Candus uses to create new QuickBooks tips each month.
The best possible way for you to receive support from Candus is to register for and attend her workshop.
Here is the link to register to attend: canduskampfer.com/workshop
Have a great day!
Kindra ~ Team Candus
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what if you do not have your customer invoices in QBO, as we use another system for customer billing. How do I add the invoiced amount per month in QBO?
to run an accrual PL
Hi Billie,
Thank you for watching our video.
If you're interested in more in-depth training on this topic, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop
Have a great day,
Samantha, Team Candus
Hello I am an accountant
How do you accrue expenses and allow for prepayments at year end ???
I dont want to be using purchase ledger or sales ledger for accruals and prepayments
Hi,
Thank you for watching our video.
If you're interested in more in-depth training on this topic, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop
Have a great day,
Samantha, Team Candus
why would my accountant ask for a cash basis end of year comparison to do my taxes when i run everything accrual basis year-round? i'm afraid she's just asking so there's more work to pad the bill, but maybe there's a good reason for it that i'm not seeing? obviously i can't ask her this haha. thanks in advance for any help
Hi! It could be that your accountant is wanting to see if you can save on taxes if you file as a cash based business rather than accrual. 😊
Have a great day!
Kindra ~ Team Candus
P.S. We’d love to connect with you! Find us on ↓
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Thanks for the feedback!
Cash basis. If I sold an item in Jan 2024 I get paid. How do I account for that item if I purchased it in Dec 2022.
Hi,
Thank you for watching our video.
If you're interested in more in-depth training on this topic, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop
Have a great day,
Samantha, Team Candus