Is there a way to switch from accrual accounting to cash accounting?

Question asked by Stuart Farrington 8 years ago

I know accrual accounting is used for larger businesses, however smaller businesses in the UK with an annual income of £81,000 or less a year have the option of using cash accounting instead, see https://www.gov.uk/simpler-income-tax-cash-basis/how-cash-basis-works

I previously used Quick Books which had the option to switch to cash accounting view, is there a similar option within Clear Books?

I'm sure there must be a good number of small businesses in the UK (and elsewhere) who use cash accounting and if this option doesn't exist within Clear Books then I think it's something that needs to be considered for the future.

2 Replies

Hi Stuart

The Cash Flow Report shows all P&L and Balance Sheet items based on cash in/out and so this is your best bet. If you need to isolate just the P&L items, export it to "CSV" which opens in Excel.

Alternatively, if having invoice/bill recording is not important, the Cash Book version of Clear Books is based solely around money in/out. Please note though that cash accounting is not allowed for Ltd Companies, no matter how small.

Hope that helps
Paul

Hi Paul

Thanks for your reply, the Cash Flow Report is just what I needed. I don't think the Cash Book version of Clear Books would be suitable for me as I need the invoice/bill recording function.

Regards

Stuart

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