• Cash Based General Ledger
• Accrual General Ledger

Which operate automatically behind the scenes.

What is the difference between the two systems?

Cash Based Accounting

The attributes of a Cash Based Accounting system are:

• Calculated on actual payments and receipts
• Easy to maintain
• GST on a payments basis is straight forward

Excellent cash based reporting is available including

• Bank Statements
• Trial Balance Reports
• GST on a Payments Basis reporting
• Cash Flow Predictions

Accrual Based Accounting

Accrual Based Accounting requires a higher level of accounting skill and a greater attention to detail when loading in transactions. Qualified accounting assistance is required if you are going to set-up and maintain the system.

Accrual Based Accounting considers

• The opening ledger balances brought forward
• The Debtors Ledger
• The Creditors Ledger
• Payments and receipts made directly through the Cash Book.

Accrual Accounting is date sensitive in that you must enter transactions on the correct dates else data quality issues can occur. (See tutorial on GST)

However there are benefits for using Accrual Based Accounting in that you can produce accurate Profit and Loss, and Balance Sheet Reports.

For assistance in setting up and maintaining an Accrual based accounting regime please book a service.