On cash basis, you generally record income when you receive payment and expenses when you pay them. Sending an invoice or receiving a bill doesn’t, by itself, record income or an expense.
This article explains how Books records transactions, payments, and adjustments when you use cash basis accounting.
To check your accounting basis, go to Settings > Books Details and find Accounting basis. Learn more in Choosing your accounting method.
Bank, card, and payment processor transactions
Books automatically records income and expenses from these transactions on the transaction date.
Payroll transactions
Books records payroll expenses on the payroll run date, even if the money leaves your account later. For example, a payroll run on August 30 that's paid out on September 3 is recorded as an August expense.
Invoices and customer payments
Books records revenue on the payment date, rather than the invoice date. Creating an invoice doesn’t record revenue or create an Accounts Receivable record.
For example, an invoice sent in August and paid in September appears as September revenue.
Bills and bill payments
Books records expenses on the payment date, rather than the bill date. Unpaid bills don’t create Accounts Payable records.
For example, a bill received in August and paid in September appears as a September expense.
Adjustments
You can use manual journal entries in Books to record adjustments. Try using Command to create these entries and automate much of the process.
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