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sblomquist
February 1, 2024
Question

Why does the statement of cash flows report default to accrual basis reporting?

  • February 1, 2024
  • 1 reply
  • 0 views

When running the statement of cash flows reports, the net income defaults to accrual rather than cash, and so it does not match the total income from the Profit and Loss report.  When I change the detailed report to cash, it will not refresh and does not update any of the information.  If I run a Net Income Detail report separate from the Statement of Cash Flows, it will match the Profit and Loss.  Please advise on how I can change the Statement of Cash Flow Income to Cash versus accrual.  

1 reply

AlverMarkT
AlverMarkT
February 1, 2024

Hi there, @sblomquist. I'm here to help. 

 

First, the Statement of Cash Flow showcases the cash movements of your company, such as cash-in and cash-out. It adjusts for non-cash transactions if your company uses accrual accounting. On the other hand, the Profit and Loss (P&L) report displays how your company performed in terms of earnings by subtracting expenses from revenue to determine the net income or loss.

 

Since earning revenue doesn't equal cash-in and incurred expenses don't equal cash-out, the net income of your P&L report doesn't match the Statement of Cash Flow by default. Feel free to refer to this blog to know more about how both of the reports relate to each other: A Guide to Creating a Profit and Loss Statement | QuickBooks Global.

 

Next, regarding the Net Income Detail report matching your P&L report, both reports are closely related as they both deal with a company's profitability. If you run both reports with the same reporting period, accounting method, and inclusion of all relevant accounts, both reports should match. 

 

In QBDT, you can also combine reports to have an organized and better overview of your company’s financial behavior. You can refer to this article as a guide: Combine reports from multiple company files.

 

We are always here in the Community to assist you with running the Statement of Cash Flow in QBDT. We are committed to providing ongoing support. Take care.

9
994510-2
March 5, 2025

You answer is to explain why I need to look at data in a format that is not useful to me?  Why have the ability to set the default for Reports and Graphs available in the first place, if QB is going to decide that I need to look at reports in Accrual Basis, regardless?  Ridiculous.

Candice C
Candice C
March 5, 2025

Good evening, @994510-2. 

 

Welcome back to the QuickBooks Community! We understand your frustration and want to help you get this resolved as soon as possible. 

 

To change your Statement of Cash Flow from accrual to cash basis in QuickBooks Desktop, use the following instructions: 

 

  1. Navigate to the Reports section.
  2. Select the Statement of Cash Flow report.
  3. Under the Customize option, choose Cash as your "Accounting Method" in the General settings before running the report.

 Note: You can change the basis for each individual report without altering your company's overall accounting method.

 

Here's an additional guide that explains the differences: Differentiate Cash and Accrual basis.

 

Feel free to come back if you have any other questions. I'm only a post away if you need me. Take care! 

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