Should a window cleaning company be cash or accrural based
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Should a window cleaning company be a cash based or an accrural based?
Answer
That's a question for your accountant. You should ask them.
Hope this helps. If so please mark solved, if not please ask more questions. Thanks!
Ray White
http://community.intuit.com/me...
http://www.raywhiteenterprises.com
Answer
Cash basis makes the most sense for this kind of business. Unless accounts receivable or inventory is significant you should go with cash basis,
Answer
It would depend upon the size of the business and the volume of business. Starting out I would recommend "Cash Basis"
Answer
I think you are overlooking that this doesn't matter when using QB. It is the reporting where you set if you want the reports to be Cash basis or accrual. If you intend to use the functions that are accrual, such as invoicing customers (allowing them to have a credit account with you) and if you intend to enter bills that you intend to pay at a later date, so you can see your cash flow needs, then these are reasons to run the reports on Accrual basis.
I recommend routine business management using Accrual reports and occasionally (perhaps quarterly) running Cash basis reports. Accrual is the bigger picture of the company's operations.
