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FCTFks
October 24, 2022
Question

Differences in cash basis reporting from Quickbooks desktop to online

  • October 24, 2022
  • 2 replies
  • 0 views

We just moved from Quickbooks Desktop to Quickbooks Online. I found the below that cash basis is reported differently but can't find anything that actually says what that difference is. What are the differences between Desktop and Online as far as how cash basis is reported? As a company that uses cash basis, we have to be able to explain why the reports look very different from when we were using Desktop to now using Online.

  • Cash basis — QuickBooks Desktop and QuickBooks Online don't track transactions as paid the same way. Reports may not match using cash basis.

2 replies

G
GlinetteC
October 24, 2022

I can help provide insights about the difference between accrual and cash methods reports in QuickBooks, FCTFks.

 

In the Cash basis accounting, income and expenses are only recorded when cash is actually received or paid. On the other hand, an accrual-basis report shows income whether your customers have paid your invoices and expenses regardless you have paid all the bills.

 

Check this article to learn more about their difference: Differentiate Cash and Accrual Basis.

 

You can also check out this article as an additional reference: Cash vs. accrual accounting: What’s best for your small business?

 

Let me know if you need further clarification on your questions. I'm always around to provide answers.

F
FCTFksAuthor
October 24, 2022

Yes, I know what cash vs accrual accounting is. My question is how cash basis reporting in Quickbooks Online differs from cash basis Quickbooks Desktop. We just moved from the Desktop version to the Online version and cash basis reporting is different. How are cash basis transactions treated differently in Online vs Desktop versions of Quickbooks?

    S
    SirielJeaB
    October 24, 2022

    Hi, @FCTFks!

    There is no difference in cash reporting between QuickBooks Desktop and QuickBooks Online. The cash basis transactions are treated the same way because when moving from QB Desktop to QB Online, the balances will not match on the cash basis method after converting. I recommend that you use cash accrual and then select all dates so that you can review all of your balances.

    You can check these articles for more details:
     


    If you would need to manage your expenses in QuickBooks Online, please visit this article: Enter and manage expenses in QuickBooks Online.

    If you need further assistance with your financial reports, feel free to reach us again.

    E
    elepadilla
    March 9, 2024

    I am finding the same issues. My AR, AP, cost of goods sold and inventory accounts detail do not match the cash basis balance sheet. Having an issue with my my inventory asset. I am trying to match year end 2022 cash basis reports from QB Desktop to QBO as I prepare for year 2023 reports.  The QBO cash basis balance sheet shows $112. The accrual basis balance sheet shows the $67,789. The detail report for the inventory account clearly shows $67,789. Why would the cash balance sheet report show $112 while the accrual report show $67,789. I think the cash basis reports are flawed.

    J
    JanbonN
    March 9, 2024

    Hello there, @elepadilla. I understand the differences you've experienced when migrating from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO). Let me share some details on why this is happening.

     

    Since QBDT and QBO are different platforms, they use different ways of calculating things. 

     

    • Methodology: different methods for cash basis reporting. QBDT typically uses a more traditional approach to cash-based accounting, while QBO has variations in its computation.
    • Accounting Settings: The settings and preferences for cash basis reporting differ between QuickBooks Desktop and QBO, leading to variations in on certain transactions are recorded and reported.
    • Transaction Processing: The handling of transactions, especially those related to AR, AP, cost of goods sold, and inventory, differs in QBDT and QBO, affecting the cash basis balance sheet.

     

    I recommend seeking an accountant's advice to help you track and record the transactions to match the reports.

     

    Additionally, you can refer to this article for things you need to do after migrating: Learn what to do after moving from QuickBooks Desktop to QuickBooks Online.

     

    Return to this thread if you need further assistance with your reports. We're here to lend a hand. 

    E
    elepadilla
    March 9, 2024

    I am a CPA. If I can't figure it out no other accountant/CPA can figure it out. My details do not match the reports. The underlying details should match for an asset account.

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