In our jurisdiction farms are permitted to choose whether to use cash or accrual, and there are various tax advantages to using cash-based.
Happily, December/January is the time of lightest business, so the difference isn’t huge when it comes to accounting. I do find I need to unpost and re-post invoices (dated Dec 31) when they are issued but not paid; and similarly bills that are issued but not due (or paid) until after the year end I post with a January 1 date. If and when I’m audited by the taxing authorities I explain what I’ve done and they’re good with it. > On May 31, 2021, at 9:08 PM, Alan Hopkins <hopp...@gmail.com> wrote: > > Hello Howard > I agree with both Michaels - you need to understand the difference > between accounting records & reports prepared on an accruals basis vs a > cash basis. You should do some reading on basic accounting. > GNUCash used for business uses the accrual basis - (invoices are > registered in accounts receivable, bills are registered in accounts > payable). Depending on the number of invoices & bills involved, you > may find that you need to develop your own cash report on a > spreadsheet. > Some of these links may be of help to you: > [1]https://www.accountingtools.com/articles/how-to-convert-accrual-basi > <https://www.accountingtools.com/articles/how-to-convert-accrual-basi> > s-to-cash-basis-accounting.html > [2]https://www.bookstime.com/articles/accrual-to-cash-conversion > <https://www.bookstime.com/articles/accrual-to-cash-conversion> > [3]https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual- > <https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-> > to-cash-conversion-excel-worksheet/ > GNUCash is excellent software (a big thank you to the developers!) and > you can get more understanding of basic accounting and using the > business features by referring to the Tutorial & Concepts guide: > [4]https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide > <https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide> > I hope that is of some help to you > Cheers > Alan > > On 1/6/21 12:42 am, Michael Hendry wrote: > > On 31 May 2021, at 15:10, Howard M. Fried [5]<cursor...@gmail.com > <mailto:cursor...@gmail.com>> wrote: > > I have several invoices that were issued in 2020 but paid in 2021. These > funds a > re not included in a P&L report for 2021, apparently because the report is > based > on date of invoice issue, or have I missed something. > > Is it possible to get the 2020 Sales that were paid in 2021 into the report > for > 2021? Simply extending the Report date range backward is not a solution > because > many invoices that were issued and paid in 2020 will be included. Or am I to > i > nclude unrealized assets for 2020 as profit, like the P&L report does (I have > no > accounting, financial, or legal experience in such matters). > > Thank you for considering, > Howard Fried > > Not an accountant either, Howard, but I believe the approach varies according > to > whether your books are kept on a cash or an accrual basis. > > If cash, then reports are based on the date when you received income, or the > dat > e you made a payment for expenses. > > I don’t use the business features, but I think that you will be working on an > ac > crual basis, and have reports on Accounts Receivable and Accounts Payable > which > carry over the end of the financial year. > > Michael > > > _______________________________________________ > gnucash-user mailing list > [6]gnucash-user@gnucash.org <mailto:gnucash-user@gnucash.org> > To update your subscription preferences or to unsubscribe: > [7]https://lists.gnucash.org/mailman/listinfo/gnucash-user > <https://lists.gnucash.org/mailman/listinfo/gnucash-user> > If you are using Nabble or Gmane, please see > [8]https://wiki.gnucash.org/wiki/Ma <https://wiki.gnucash.org/wiki/Ma> > iling_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > > References > > 1. > https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html > > <https://www.accountingtools.com/articles/how-to-convert-accrual-basis-to-cash-basis-accounting.html> > 2. https://www.bookstime.com/articles/accrual-to-cash-conversion > <https://www.bookstime.com/articles/accrual-to-cash-conversion> > 3. > https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/ > > <https://www.double-entry-bookkeeping.com/bookkeeping-basics/accrual-to-cash-conversion-excel-worksheet/> > 4. https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide > <https://www.gnucash.org/viewdoc.phtml?rev=4&lang=C&doc=guide> > 5. mailto:cursor...@gmail.com <mailto:cursor...@gmail.com> > 6. mailto:gnucash-user@gnucash.org <mailto:gnucash-user@gnucash.org> > 7. https://lists.gnucash.org/mailman/listinfo/gnucash-user > <https://lists.gnucash.org/mailman/listinfo/gnucash-user> > 8. https://wiki.gnucash.org/wiki/Mailing_Lists > <https://wiki.gnucash.org/wiki/Mailing_Lists> > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. 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