tag:support.easybooksapp.com,2011-04-05:/discussions/questions/14-cash-and-accrual-based-accoutingEasy Books: Discussion 2018-10-18T20:07:56Ztag:support.easybooksapp.com,2011-04-05:Comment/64740152011-04-06T15:10:02Z2011-04-06T15:10:02ZCash and Accrual Based Accouting<div><p>The accounting method depends on whether you create customer
accounts or not. If you want to use cash based accounting, but you
still want to use customer accounts then there is a little more
work to do at the year end. The app is based on the accrual method,
so any sales you make incur tax on the date of the sale. At the
moment the app does not adjust the overall P&L for cash based
accounting, but it does for VAT/GST.</p>
<p>If you use customer accounts, and you raise sales invoices then
the app is using accrual accounting. This is for the purposes of
VAT (or GST in your case!). For profit and loss, you would need to
adjust the overall profit figure by the outstanding balances of
your customer and supplier accounts. Just take the total amount
owed by your customers on the year end and reduce your profit by
that figure. Likewise, increase your profit figure by the amount
owed to your suppliers. These balances are shown if you tap on
"Customers" or "Suppliers".</p>
<p>I will add the option to file the P&L using cash based
accounting soon!</p>
<p>Mathew</p></div>Admintag:support.easybooksapp.com,2011-04-05:Comment/64740152011-04-06T15:22:23Z2011-04-06T15:22:23ZCash and Accrual Based Accouting<div><p>Thanks. Thats awesome.</p>
<p>Erik</p></div>Erik Bjur