Today we’re diving into one tiny QuickBooks setting that can make a BIG difference for whether your books make sense, and most people don’t even know it’s there! Did you know there are two accounting methods: Cash basis and Accrual basis?
Cash basis: Income and expenses show up when money moves (you get paid or you pay).
Accrual basis: Income and expenses are recorded when they’re invoiced, not necessarily paid.
Choosing the right method and using it consistently will ensure that your books for calendar months and years are accurate, which is of course always our goal! Also though, using the right method will enable you to compare your months from one year to the next and watch for seasonal patterns.
Reach me here https://erikamillard.com/contact so that I can talk this out with you and help you choose the right method for your business.
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Happy Bookkeeping!
