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QuickBooks Accounting

Presentation on Cash Method in QuickBooksPrepared by: Hammad Khalid

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Choosing an Accounting Type Cash or Accrual?• A. Cash accounting

• The practice of recording sales and expenses only when cash is actually received or paid out.

• B. Accrual accounting• The practice of reporting income when earned and expenses when incurred

Businesses with inventory (e.g. retailers) must use this method.

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Cash Accounting

Advantages• Cash accounting

requires less staff and financial resources

• Cash accounting clearly represents cash flows

• Cash accounting (sometimes) provides tax benefits

Disadvantages• Cash accounting can

misrepresent your company’s financial position

• Cash accounting doesn’t conform to GAAP

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Cash Flow Money In and Money Out

Money In Money Out

CUSTOMERS

Sales

Services / Products

Out

VENDORS

Expenses

Services / Products

In

YOUR BUSINESS

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Creating Reports

• When you create reports in QuickBooks, you can

switch between cash and accrual reports at any time,

regardless of which bookkeeping method you have

chosen for tax purposes. Superior University

Change Business Report

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Modify Report

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Chang to Cash Method

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Report Change to Cash Basis

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