Question: Can I just switch from cash to accrual basis in my company? There is a button to do that in QuickBooks.
Answer: Generally, you cannot switch your basis from cash to accrual or accrual to cash without a significant and legitimate business reason, and a government sanction, too.
That being said, QuickBooks does have a toggle button to switch reports from cash to accrual or vice versa. Primarily, this switch is used once when a business initially chooses its basis in QuickBooks.
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Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.