Choose between cash and accrual accounting methods in reports

Learn more about the difference between Cash and Accrual methods for QuickBooks Online.

Cash and accrual are two methods of reporting income and expenses. The same report can paint a different picture depending on the method you pick.

Cash #

When you use the cash method in reports:

• Your report counts income or expenses as though they happened when you got the payment or paid the bill
• If you sent an invoice or got a bill but the money hasn’t changed hands yet, your report doesn’t include it in your income or expenses

Accrual #

When you use the accrual method in reports:

• Your report counts income and expenses as if they happened when you sent the invoice or got the bill
• It includes income and expenses even if the money hasn’t changed hands yet

Change the method on a report #

To see the difference another accounting method will make in your reporting, you can customize an individual report to use a different accounting method and compare the results.

To change the method used on an individual report:

1. Go to Reports.
2. Select a report.
3. Select Cash or Accrual under Accounting method (you can also select the Customize button to open the Customize Report window and change the setting in the General section).
4. Select Run report.

Talk to an accountant about which method is most appropriate for your company.