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Is NolaPro Cash or Accrual based?


NolaPro is Accrual based.

For more information on the difference between Cash and Accrual based accounting, please visit the link:

Some find it useful to use the Trial Balance(Reports->Ledger) for some of their cash reporting requirements.

Under the accrual method, transactions are counted when the order is made, the item is delivered, or the services occur, regardless of when the money for them (receivables) is actually received or paid. In other words, income is counted when the sale occurs, and expenses are counted when you receive the goods or services. You don't have to wait until you see the money, or actually pay money out of your checking account, to record a transaction.

Under the cash method, income is not counted until cash (or a check) is actually received, and expenses are not counted until they are actually paid.

We do have an add-on available on The NolaPro Store "Cash Basis Sales Tax Report". This enables you to view only invoices "paid" in a given month on the sales tax report -- making the sales tax report a cash-basis type report.

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Article ID: 95
Category: General Info
Date added: 2010-04-27 16:10:17
Views: 1125
Rating (Votes): Article rated 4.5/5.0 (172)

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