Setting
Up a Cash-Basis Company after Converting Data from QuickBooks
How Do I...
Sage 50 allows you to operate companies using two accounting methods:
- Accrual: The
accrual method records all entries at the time business is transacted,
whether or not cash has been transferred. In most cases, companies that
carry inventory or resell goods must use this method of accounting.
- Cash: The
cash method recognizes transactions at the point you actually exchange
cash. While the cash method is more common in service industries, some
organizations may be restricted from using this method by the IRS.
QuickBooks sets all its companies up using the accrual accounting method.
However, QuickBooks allows you to display reports that reflect the cash-basis
accounting method.
If, when converting your QuickBooks company, you choose to set up your
new Sage 50 company using the cash-basis accounting method, Sage 50
will not convert chart of account balances. All other balances will be
converted. After the conversion is complete, you will have to enter beginning
balances in Sage 50's chart of accounts.
Tip: Print
the QuickBooks Trial Balance report using the cash-basis method. To do
this, follow the procedure below:
- From the QuickBooks Reports
menu, select Accountant & Taxes, then Trial Balance.
- When the report appear on the screen, select the
Customize Report or Modify Report button and choose Cash as the Report
Basis.
- Select OK
to display the report. Then, print the report.
You can then enter beginning balances for your accounts in Sage 50
using this report as a guide.
What do you want to do next?