Mercury Books supports both cash and accrual accounting. You choose your accounting method during setup, and it applies to your whole set of books. This article explains where the setting lives, what changes depending on which method you're on, and how to change it if you need to.
Where your accounting method is set
You select your accounting basis during Books setup. To see which method you're on afterward, go to Settings > Accounting basis.
What each method does in Books
The difference comes down to when revenue and expenses.
- Cash basis records income when money arrives in your account and expenses when money leaves it. If you've sent an invoice or received a bill but the money hasn't moved yet, your reports don't show it.
- Accrual basis records income when you earn it and expenses when you incur them, whether or not the money has moved. Your reports reflect the invoice revenue or bill expense on the date the invoice or bill was issued.
Changing your accounting method
Your accounting method is set when your books are created and can't be switched on your own.
If you need to change it, head to Settings > Accounting basis to contact support.
FAQs
Which method should I choose?
Which method is right for your business depends on your size, your industry, your investors, and your tax situation. If you’re unsure which method to use, consider working with one of our Accounting Partners.
Can I see my reports on both bases?
Not currently. Your reports reflect the accounting method your books are set up on.
Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and e N.A., Members FDIC.