A method of bookkeeping in which you regard income or expenses as occurring
at the time you actually receive a payment or pay a bill. A cash-basis report
shows income only if you have received it, and expenses only if you have paid
them. For example, if you have not yet received a payment for an invoice, a
cash-basis report on your sales will not include the amount of the invoice.
In QuickBooks, you can put all summary reports on a cash basis by selecting
Cash in the Reports & Graphs Preferences window. (Summary
reports summarize groups of transactions; they have the word
"Summary" in their titles.) On the other hand, reports that list
individual transactions always appear as accrual basis reports when you create
them from the Reports menu. To change a transaction report to cash basis,
click Customize Report in the report window and select
Cash in the Report Basis section.