Why does my income change when switching from Accrual to Cash Basis report type?

adrianmldn

My income lowers by $394.29 when switching from Accrual to Cash Basis. The date range is 01-07-2019 to 31-06-2020.

I don't have any unpaid invoices or receipts in that period.

Cost of Goods sold and Operating Expenses don't change between the two.

Thank you!

EDIT: I figured it out. It was an invoice that was sent before the cut off date, but paid after the cut off date.

AlexL

Hey @adrianmldn , you got it! Cash Flow typically records money on the date of payment while Accrual records on the date that the invoice/bill was actually created. This would definitely have an impact on your accounting if you didn't know the difference!