Accrual/Cash Basis - Salary

21

What are you asking to be removed? And why should an accounting program be changed just because a client does not understand accounting?

The underlying theme of this thread is that many users or clients of users do not fully appreciate necessary differences in accounting practices when adopting cash versus accrual basis accounting. The fact that your clients seem to be switching back and forth between cash and accrual reporting and wondering why numbers change or do not illustrates my point.

24

Actually, that is not correct. Under cash basis accounting, expenses should be recognized when the income with which they are associated is recognized. That is why it is so problematic to switch back and forth between cash and accrual based accounting.

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