I know this is probably a simple question here, but how can I tell if I'm on the accrual or cash basis in QBpro06? All I can find in help is how it effects reports? Is this all that is effected? Reports?
TIA Alex Moreau
QB may report it both ways, but from a tax standpoint, you are not at liberty to switch back and forth from reporting taxes first one way and then switching to the other way. A service business with no inventory, few payables and few receivables might use the cash method whereas a business with inventory would be better suited to using the accrual method. You either have to do a lot of studying on this or else talk to an accountant to understand the tax implications of the method you will choose.
Bob
Now that's what I call a complete answer. Thanks to both both of you for the informative answers.
Alex Moreau
And I believe sometimes you do not get a choice and and there is a requirement as to which method is used.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.