Hi, I accrued payroll and make manual entry in journal: Payroll Expenses Debit $500, A/P Credit $500. But in Income Statement by Cash Method I see $500 expenses. Why?

Nice to see you here in the Community space, @report-grdeliver.

Allow me to share some insights about creating Journal Entry (JE) in QuickBooks Online (QBO). JE doesn’t stick to cash or accrual method when running a report, it’ll post regardless of what accounting method you use.

I got you these amazing articles that you can read to learn more about using JE and the difference between cash and accrual accounting method:

• Create a journal entry in QuickBooks Online
• Cash vs. accrual accounting: What’s best for your small business?
• Choose between cash and accrual accounting methods in reports

Additionally, I’ve added this article that you can check anytime you need to customise a report to show the information you need the most: Customise reports in QuickBooks Online.

I’m more than happy to help you out again if you have other follow-up questions for QBO account. Have a great day ahead.