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
Newbie question
Apr 01, 2006
4 Replies
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.
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