QuickBooks Accrual-based or Cash-based Default for Reports
QuickBooks allows you to specify whether to see summary reports as accrual-based or cash-based. When you create a cash basis report, QuickBooks calculates the data by considering actual cash transactions. This means that revenue doesn’t exist in the report until a customer pays you—and the expenses don’t exist until you pay the vendor. When you create an accrual basis report in QuickBooks, the data is calculated to reflect all the transactions you have entered. This means that revenue exists when you generate an invoice for a customer and expenses exist when you enter a vendor bill. To set the default specification for your summary reports in QuickBooks:
- Choose Edit | Preferences from the QuickBooks menu bar.
- Click the Reports & Graphs icon on the left pane and click the Company Preferences tab.
- In the Summary Reports Basis box, choose either Accrual or Cash, and then click OK to save this setting.