Want to know QuickBooks Desktop’s new cash-Accrual report feature & cash vs Accrual accounting? In this article we are to discuss the details of cash vs Accrual accounting, QuickBooks Desktop has got a new feature for cash and accrual basis reports. Read the article to understand the basics of cash & accrual, and get your comparison ready cash vs accrual accounting. So, go through the article to get all your queries resolved related to the new cash- accrual report feature, and get your own comparison and idea of cash vs accrual accounting. For more info contact us toll-free : +1-844-405-0904
In this blog, I am gonna talk about the Cash-Accrual basis and also the newly added feature. Firstly let us know about the Accrual and Cash basis.
What is an Accrual basis?
- Accrual Accounting is the accounting when entering a transaction and the actual receive or pay are two different events.
- An Accrual Basis shows income irrespective even if customers have paid invoice and expenses. Irrespective even if you have paid your all bills.
What is a Cash basis?
- This is a Bookkeeping method where you will receive a payment or bill in regard to income or expenses as occurring.
- In this, if you have received cash then only you can see Income, and if you have paid cash then only you can expenses.
- Well, the cash-basis report will not include the income if you have not got the invoice for payment.
Earlier we had to either use a reporting preference or we need to open the customize the report option to select either cash or Accrual just to select the accounting basis of the QuickBooks Financial reports.
With Quickbooks 2018, it is very easy to switch between accrual basis and cash basis reports. You can switch between them with just a single click, and Button is located at the top left of your reports
QuickBooks Accrual vs Cash Basis
In QuickBooks Summary Reports, if you have set up your company on a cash basis then your reports will show the group of transactions based on cash that includes profit and loss statements for a set period of time. Therefore, whenever you receive a major project in a month then QuickBooks will show a loss in its profit and loss statement. The profit won’t be recorded in QuickBooks until you get the payment from the client for that project.
On the other hand, if you have set up your company on an accrual basis then all your invoices will be shown as accrued, this is the default setting in the QuickBooks. Here, your income will be recorded as soon as you create an invoice for the completed project and expenses will be recorded when you enter a bill. You will be only able to see cash on hands in the bank registers, in the Account Receivables (A/R), the money will be shown as owed by the customer and in the Account Payable (A/P), the money will be shown as you owed to the vendors.
QuickBooks Desktop New Cash-Accrual Report Toggle feature
In QuickBooks, the detailed reports are set to default and are computed and displayed on an accrual basis, but if you want to get a summarised reports you need to configure settings according to your requirement. You find the setting in the reports and Graphs of company preferences.
Before the QuickBooks new update either we had to manually customize the reports from the customize report tab or had to change the report preference.
QuickBooks will make changing your accounting basis easier than ever. Earlier if you want to change the basis you need to open the Customize report option. Then select the accounting basis from the display tab.
QuickBooks Desktop gives you the accounting information you want on the reporting basis you need at the click of a button.
- Summary Reports: These reports can be both cash or accrual basis. These reports consist of summarized groups of transactions and have word summary in their titles.
- Detail Reports: By default, these reports are created on the accrual basis. These reports consist list of individual transactions.
Set your Preferences
- First, sign in to your QuickBooks company file as Admin and also make sure that you are in Single-user mode.
- From the top menu bar, click on the Edit menu and then select the Preferences option.
- Here, select the Reports and Graphs option and then open the Company Preferences option.
- You can either select the Accrual or Cash basis from the Summary Report Basis option.
- Select OK.
The Bottom Line
We hope this article provides you all the required information. Still, if you require any kind of support then visit QuickBooks Support Helpline page or Dial +1-844-405-0904