PSA L&P - Accounting Basis: How to change from cash basis accounting to accrual basis

How to change from Cash Basis Accounting to Accrual Basis

ParishSOFT must make this change for you. 

If you change to an accrual basis, the software will treat all the transactions for all years in the database as if they were always on an accrual basis.

  • For any invoice where the invoice date and the check date are not the same, this may change the actual vs. budget numbers in your budget report. 
    • If your check dates and invoice dates are always the same, there will be no effect on your budget reports.
    • However, the actual vs. budget numbers may show as out of balance where invoice dates are in one month and his check dates are in a later month since this moves the expense into the invoice date month which changes the actual vs. budget numbers.

For example, in a prior fiscal year, any unpaid bills in the software at month-end will show a debit to the expense account and a credit accounts payable.  Therefore, prior period financial statements may be restated.

If you would like to change your accounting bases from Cash to Accrual, please contact support.

 


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