Cash-Based Accounting

In cash-based accounting, a transaction is not recorded until cash is received or paid. Cash receipts are treated as revenues, and cash payments are handled as expenses.  Note that this column is available only if you are licensed to use Open Items (License Code of 'OI').

Select this option if your organization recognizes the income for your services when the cash is actually received, rather than when they are billed (Accrual method).

You cannot use the Cash Based method of accounting with the Balance Forward option. If you select Cash Based, you must also select Open Items.