How to change from Accrual Basis Accounting to Cash Basis
ParishSOFT Support must make this change for you.
If you change to a cash basis, the software will treat all the transactions for all years in the database as if they were always on a cash 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 check 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 have shown a debit to the expense account and a credit accounts payable. Under cash, the expense will be debited when the check is written. Therefore, prior period financial statements may be restated.
- If you are moving to Accrual from Cash, Please create an AP Account that you would like to use with your Accrual Based system. There can only be one accrual account.
If you would like to change your accounting bases, please contact support. The support representative will make sure the proper specialist updates the account. If you are moving from Cash to Accrual, give support to the AP Account you will use for your accrual system.