You can set either cash or accrual as your default report format.
Of course, at any time you can change a report to the other format. For instance, if your preference is set to accrual, but you may sometimes want to view a cash basis P&L:
- Choose Reports, Company & Financial, and then Profit & Loss Standard.
- Click the Modify Report button, and then choose Cash in the Report Basis section, as shown in Figure 4.
You can change the accounting method for your P&L on the fly.
NOTE: Most, but not all, reports in QuickBooks allow you to change between cash and accrual. When a report is onscreen, choose Modify Report.
If you don't see the Report Basis section, shown in Figure 5, then you'll know that you can't toggle the report basis. Now that you understand the ins-and-outs of running cash and accrual basis reports, let's explore the Statement of Cash Flows.