What accounting basis does your bookkeeping use?

We support both cash basis and accruals basis bookkeeping. Sole traders and ordinary partnerships are on cash basis by default, and it's the simpler of the two. A limited company or an LLP can't use it, because its accounts must be on the accruals basis. So we set their books up that way from the start. 

Accruals basis: If your chartered accountant or a lender needs accruals basis financials, let us know during onboarding and we'll set your books up that way.

In plain terms:

• Cash basis records income and expenses when money actually changes hands.
• Accruals basis records them when they're earned or owed, even if the cash hasn't moved yet.

For most sole traders and ordinary partnerships, cash basis is the more straightforward choice.

Cash basis vs. accruals basis: Your chartered accountant can advise which is right for you.

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