Convert QuickBooks Company - Accounting Method
This window lets you select the accounting method you want to use for your converted company.
- To use accrual accounting, select the Accrual. Generally, you will select this option if your company has inventoried stock and grants credit to customers. (Most companies choose this option.)
- To use cash-basis accounting, select Cash. Generally, you will select this option if your company does not have inventoried stock and receives customer payments immediately upon sale.
Warning! Since you can't change the accounting method once it is chosen, be sure your choice is the right one for your company. Check with your accountant to be sure you select the correct method!
If you select Cash for your accounting method, Sage 50 will not convert chart of account balances. All other balances, except employees, will be converted. After the conversion is complete, you will have to enter beginning balances in Sage 50's chart of accounts. How do I do this?
Note: Also, if you select Cash for your accounting method, you will not be able to track retainage on customer or vendor invoices.
When finished, click Next to continue with the conversion process.