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Cash Basis vs Accrual Accounting
Posted: Fri Feb 12, 2016 1:23 pm
by WestsideGillette
Accrual accounting:
I want to record expenses in the month the work incurred or the month the invoice is dated. Then write a computer generated check to pay the invoices in the following month. Is that possible?
Re: Cash Basis vs Accrual Accounting
Posted: Fri Feb 12, 2016 11:01 pm
by NeilZ
WestsideGillette wrote:Accrual accounting:
I want to record expenses in the month the work incurred or the month the invoice is dated. Then write a computer generated check to pay the invoices in the following month. Is that possible?
FWIW .. churches are cash basis financial organizations. Powerchurch is designed for churches: you enter an invoice, the expense will not be processed until after the check is cut, and the then posted to Funds Accounting.
There is a way around it, but it is a kludge. You would write the invoice, and instead of using the checking account, you would use a liability account as a temporary hold. However, the system does not see that as an accural system does. A cash basis system will see the amount in the liability account as money that is 'spoken for' thus if a Cash Management Report (Cash Flow) is run, the bottom line will show the money as spent.
Why are you looking to do this?