This page will guide you through selecting the cash or accrual accounting method, helping you track your financial transactions according to your business needs.
Choosing the right accounting method is important for managing your company’s financial records.
Instructions
To change your company’s accounting method:
- On the left menu, go to Settings > Other > Accounting method.
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- Accrual: In this method, revenue and expenses are recorded when earned or incurred, regardless of when the cash is received or paid. This provides a more accurate picture of a company's financial health, including all transactions related to a given period, not just those where money changed hands.
- Cash: This method records revenue and expenses only when cash is received or paid. It's straightforward and often used by smaller businesses or individuals. For example, using this method, you record income when you receive payment and expenses when you pay a bill.
3. Select Save to complete the process.
What's next?
Keep exploring our platform by taking the next step: Add cost codes and types page.