I have two Suppliers and 6 Purchase Invoices entered. In Chart of Accounts it shows “Accounts payable” under Liabilities. But in the Summary the “Accounts payable” is not shown. I changed from Accrual to Cash method and that’s when it disappeared. How do I get Accounts Payable to show again in the Summary?
Change back from Cash to Accrual?
On a Cash Basis, there is no such thing as Accounts Receivable - sales are recorded when you receive the money
Oh okay. My purpose was simply to have a visual reminder of future payables under Liabilities in the Summary. I’m guessing I would have to set up a manual liability account rather than use the “Accounts payable” control account if I wanted to convert to the cash basis. But yes I changed back to Accrual and everything looks fine now.
If you invoice customers and get paid with a delay, then cash basis accounting will not give a proper view of the state of your business. It is only suitable for small, cash based businesses
Well, the accountant checked the box “Cash Method” in last year’s return, which is why I tried to change it in Manager. But for bookkeeping purposes and cash flow management, I need to be able to plan for items that still need to be paid by a certain due date during a given period. I find it super convenient to use Purchase Invoices in Manager, because you get a Summary of all the items that are still outstanding, including when they are due!
And when it’s time to pay them, all it takes is one click, and you can print out the Invoice to send along with your check if you wish, as well as convert it from an Invoice to a Payment (the data is already entered in advance).
I think it would be fruitful to have a discussion with your accountant about cash/accrual accounting