How to Select an Accounting Method
Grace B. avatar
Written by Grace B.
Updated over a week ago

You can determine whether your reporting is generated via a Cash-Based system vs. an Accrual System.

Cash-Based Accounting - Reports income when you receive payments from the customer. This method recognizes revenue when cash is received and expenses when cash is paid out.

Accrual-Based Accounting- Reports income when you bill a customer. Under this method, an expense is recognized upon the obligation to pay it.

If you have any questions regarding which method you should choose, please consult your accountant.

To choose your accounting method:

  1. From the left navigation menu, click Business Tools > Billing Manager.

  2. Click Billing Setup.

  3. From the General Settings tab, under Account Method, select either Cash or Accrual.

  4. When finished, click General Settings.

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