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Accounting & Bookkeeping · How-to guide

Choose cash or accrual accounting

Understand the accounting-basis setting and how it changes the timing of income and expense recognition.

Audience: Finance administratorsFeature: Accounting basisModule v1.4.5
Feature pathAccounting → Settings → General
Before you beginThis guide follows Accounting and Bookkeeping module version 1.4.5. The required access is Accounting Settings: Edit. A related screen can remain hidden when an optional module is inactive, a source record is in an ineligible status, the selected account is inactive or the user is not an assigned approver.

What this feature does

Understand the accounting-basis setting and how it changes the timing of income and expense recognition. It forms part of Britixo Enterprise CRM's Accounting & Bookkeeping module and uses the module's permission-aware controller, status and mapping flow rather than a generic spreadsheet process.

How the module flow works

The setting affects how the module presents financial activity; it does not replace source-document status controls. An unpaid customer invoice still exists operationally even when a cash-basis report does not yet recognise the income in the same way.

Accrual reporting depends heavily on correctly converted invoices, bills, credit notes and expenses. Cash reporting depends on correctly converted payments and cash movements.

Use Trial Balance and detailed transaction reports to explain unexpected differences.

Step-by-step workflow

  1. Confirm the basis required by the organisation's accountant and reporting obligations.
  2. Open General Accounting settings.
  3. Select the approved accounting method.
  4. Save the setting.
  5. Run a controlled Profit & Loss report for a period containing unpaid and paid records.
  6. Confirm the result with finance before using the basis for management reporting.

Important fields and decisions

Accrual basisRecognises income and expense when the underlying invoice, bill or expense is recorded.
Cash basisFocuses recognition on received or paid cash according to the module's supported report logic.
Source datesInvoice, payment, bill and expense dates must be accurate under either basis.
Report comparisonUse the same basis when comparing periods.

What happens after completion

After the action is saved, Britixo keeps the Accounting record connected to its source and updates the visible status or ledger data supported by this workflow. Review the saved result rather than relying only on a success message. Where the action posts accounting data, total debits and credits must balance and the accounts must match the approved mapping or manual selection.

  • Open the saved record and confirm its final status.
  • Review the source reference and every debit and credit line where ledger data was created.
  • Use the relevant register, ageing, reconciliation or report to verify the wider effect.

Controls, checks and common mistakes

  • Do not switch basis casually between reporting periods.
  • A cash-basis view does not remove receivable or payable operational records.
  • Keep invoice and payment dates accurate.
  • Document the effective date of a policy change.
  • Use the least destructive correction available and record the reason for material changes.
  • Do not bypass a permission, approval or closed-period control by changing unrelated data.
Accounting and data safetyDeletion, reset, void, refund, mapping, journal and reconciliation actions can change financial history. Use approved access, retain supporting evidence and validate the result in the General Ledger or relevant control report.
Browse connected topics:invoicepaymentcredit noteexpensereconciliationsupplier billcheckreportapprovalmappingdouble-entrysales accountingvendorcustomers
Configure general Accounting settings →Convert sales invoices to Accounting →Convert invoice payments to Accounting →Use Profit & Loss reports →Accounting & Bookkeeping module overview →Enable Accounting access and permissions →