Change from Cash to Accrual-Basis Accounting
Do not turn off the cash-basis accounting option just to make an accrual-basis entry. When you turn off the option, the program assumes you want to switch to accrual-basis accounting and immediately updates all your accounts. Instead, enter a transaction with a date earlier than the Cash Accounting Date.
To change from Cash to Accrual-Basis Accounting:
- Before you change accounting methods, make a backup of your company files.
- In the Home window, from the Setup menu, select Settings, open Company and then System.
- Clear the Use Cash-Basis Accounting option.
- Click OK.
The program processes all outstanding cash-basis accounting entries and updates the related accounts, as of the session date.
Note: If you change your mind about switching to accrual-basis accounting, you cannot change the status of existing transactions to cash-basis entries. You must restore your cash-basis data from the backup copy of your company files.
Be sure you do not mix cash-basis and accrual-basis entries in the same time period as a result of changing from one method to the other.