Accountant wants cash basis with no A/R - possible in QB?
My client's accountant wants me to do the books for a small business on a cash basis, with
no accounts receivable
at all, therefore crediting/debiting income only when payments are received from clients or a refund is issued. He doesn't want invoices to affect or show up on the reports at all, including the Balance Sheet. Is this even possible in QB while continuing to use it to create invoices?
The accountant says not to create invoices in QB, but how can I possibly efficiently track what is owed and what each payment from the clients is for without doing that? And how can I provide my client with the A/R information that he's asking for? The accountant is saying that I should create the invoices outside of QB, but that makes no sense at all to me and would add so much more needless work and difficulty! Is this as insane as it sounds to me or am I missing something??
Another problem with this: When I run the P&L report, even on a cash basis, it bases the income on the invoices paid. But I loaded balances (including A/R balances) from the previous bookkeeper (using journal entries to Opening Balance Equity and Accounts Receivable), so payments made for those are not showing up as income on the P&L. Did I load the balances incorrectly? And what accounts should I use, instead of those two?
Using QuickBooks Pro 2012.