Hi Angelyn,

I think you are wrong on this one

@Angelyn_T wrote:

On the other hand, selecting a liability account the products/services Income account drop-down is not available. The system only allows you to pick an Income account type from there. I'm adding these screenshots as your visual reference.

 

b'cos i have already set that up and using it perfectly. First created a Deffered income account as current liability then edit product income account to deffered Income account. Its that simple.

And I dont know why u think it's not doable in QBO or it is not good to do so. Have a look at below 2 screenshots for your knowledge please.

 

 

 

 

Now for your Cash and Accrual answer- let me give u an example question and you try to answer that to me thru QB screenshots. Question - Do this in QB pls. On Oct 7 2021, create invoice of $1200 and recieve its money on 8th Oct 2021 full amount. Create a bill as well of  $6000 on 25th Oct 2021 and pay it on 1st Nov 2021. Now note down that The invoice you raised was for 12 months and this income will accrue in next 12 months from the date of Invoice. Same thing is for the Bill you paid, that was also an advance for next 12 months. Now once you are done with these transactions then please run your profit and loss report, there you will see two options - Cash or accrual. Run both one by one and see results and then share your screenshots pls. That will help you understand the problem in QBO perfectly or May be you could help me understand the system perfectly.

 

I am also going to see the links you shared about these methods: Cash vs. accrual accounting: What’s best for your small business?.

 

Thanks for your reply and time. Really Appreciate that buddy.

 

Regards,

Navneet