Cash vs Accrual

[faithumc9]

I purchased this software for many reasons but missed the "cash-basis" only when purchasing. This is extremely disappointing, before moving to another software program I wanted to see if anyone has devised a best practice work around for recording expenses in the month they apply vs the month paid.

Also on prior year strings there is reference that PC+ might be developing an accrual basis option. I have seen other products that allow you to choose during the setup. Is this something PC+ is looking into?

Teresa

[NeilZ]

I purchased this software for many reasons but missed the "cash-basis" only when purchasing. This is extremely disappointing, before moving to another software program I wanted to see if anyone has devised a best practice work around for recording expenses in the month they apply vs the month paid.

Also on prior year strings there is reference that PC+ might be developing an accrual basis option. I have seen other products that allow you to choose during the setup. Is this something PC+ is looking into?

Teresa

Teresa ..

Church DO operate on a cash basis only. They do not businesses that have a product to sell, thus inventory, etc. The income usually relies on contributions from those who attend worship. While there may be some income from other sources, again, these are not the primary sources of the congregation's income.

No matter when an expense is done, when the check is cut then, and only then, are the funds shown as an expense. However, if you are using a church credit card, then those expenses become a liability. Those you CAN expense in the month the item or service was charged. You would credit the liability account and debit the expense account. Then you can reconcile all these expenses to the charge card statement when it arrives the following month, and you pay using the liability account as the debit, and the checking account as the credit.

However that is the only area where there is an 'accrual' type of transaction.

Could you explain why the cash basis accounting is a problem?

[faithumc9]

Thanks for the reply. I am a CPA and yes the church management looks at things on a cash basis in general but accrual basis is required for GAAP purposes.

[NeilZ]

Thanks for the reply. I am a CPA and yes the church management looks at things on a cash basis in general but accrual basis is required for GAAP purposes.

Not necessarily ... please review this information, its prepared by a CPA who specializes in church accounting.

https://www.churchcpa.net/to-gaap-or-not-to-gaap/