PSA L&P - Account Balance: Why an unpaid bill will not show in the account's balance when following the cash method of accounting

Why an unpaid bill will not show in the account's balance when following the cash method of accounting

The cash method of accounting is based on the check date.

In the cash method (as compared to the accrual method) an unpaid bill has no effect on any account balance until the bill is paid.

If there is a need to accrue expenses before the bill is paid you could change to the accrual method of accounting. Note: only the ParishSOFT IT team can make this change to your software from cash to accrual, and it will change EVERY bill that has ever been entered.  As such, reports for closed periods will most likely change as the invoice date dictates when expenses are incurred in accrual.

 

 

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