Free Accounting Software + Tax Returns, BAS, Bookkeeping and Payroll from Free Accounting Pty Ltd

Free Accounting Software Forum - Profit & loss on cash received

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Is it possible to do a profit & loss on cash received instead of credit sales?
Yes, the profit and loss and balance sheet are generated based on the account you select when entering the transaction. For example if you select the account Sales Revenue it doesn't matter if you enter it in the Cash Received or Credit Sales pages.

The only reason to use the Credit Sales page over the Cash Received page is that you want to generate the invoice to the customer prior to receiving payment. Also note how this can impact the BAS below.

On the purchases side you can most often save time by going straight to Cash Payments rather than first putting through the Credit Purchase.

If you are doing your BAS on the accruals basis you need to enter the Credit Sale/Credit Purchase transaction and separate Cash Received/Cash Payment transaction so that Free Accounting Software can determine the invoice date and BAS period to put it in. Often for purchases the payment date is the invoice date so you can safely skip the Credit Purchase step. I generally recommend the accruals method for BAS as it's easier to reconcile GST payable and receivable.

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