Finacials as Cash when system is accrual

[vtatgm]

I have been running my system as accrual and I need to print my year end financials as "cash basis" since this is our filing status with the IRS. In the past, I have gone in and changed the dates on all my payables and receivables to 01/01 of the next year, print the reports, then change the dates back, this is prone to errors.

Thanks,
JMW

[Lorin Browning]

Print a trial balance for December 31, 2005 (if that is the year you are concerned with). Determine what accounts you want to change.

For each account that will be changed, do a (possibly very complex) General Journal entry with a debit to those accounts with a credit balance and a credit entry to those accounts with a debit balance. Use an account from the equity section of the Balance Sheet as the account to which you would plug an entry to get the General Journal entry into balance.

On January 1, 2006 make a Gerenal Journal entry reversing the entries made on the December 31, 2005 entry.

Depending upon the purpose for the switch from accural to cah assounting, it may be desirable to make the initial General Journal entry dated January 1, 2006.

[Markr1306]

Originally posted by vtatgm
I have been running my system as accrual and I need to print my year end financials as "cash basis" since this is our filing status with the IRS. In the past, I have gone in and changed the dates on all my payables and receivables to 01/01 of the next year, print the reports, then change the dates back, this is prone to errors.

Thanks,
JMW

What I have always done in past is keep books on accrual basis
download the trial balance to Excel, post the adjustments to convert to cash in the excell spreadsheet. its a lot cleaner doing it this way. You could also downlaod the actual statemensts and also do a conversion via the Excel. this is acceptable to the IRS.