BoldTrail BackOffice doesn't have a built-in cash or accrual accounting setting. Your accounting method is controlled by:
When you record payments in BTBO (immediately or later)
Your reporting settings in QuickBooks Online
This guide explains how to use BTBO for either cash or accrual accounting based on your business needs.
Cash basis recognizes income and expenses when money actually moves. Accrual basis recognizes them when invoices and bills are created, even if payment happens later.
The key difference? Your Accounts Receivable (money owed to you) and Accounts Payable (money you owe) balances. When these stay at $0, you're on a cash basis. When they carry balances, you're on an accrual basis.
Option 1: Cash Basis (Record Payments Immediately)
Enter the payment at the same time you create the invoice or bill. Your A/R and A/P stay at $0, and income and expenses are recognized only when money changes hands.
Common scenario: Commission check arrives at closing, and you immediately pay the agent their split.
Option 2: Accrual Basis (Record Payments Later)
Create the invoice or bill when the transaction occurs, and then record the payment when the money is actually transferred. Your A/R and A/P carry balances that track what's been earned or owed.
Common scenarios:
Commission checks arrive 5-10 days after closing
Agents pay monthly desk fees
You invoice for referral fees with NET 30 terms
Bonus: Adjust Accrual to View Cash Basis
Even if your books carry A/R and A/P balances, you can instantly view cash basis reports in QuickBooks without changing how you enter transactions.
In QuickBooks: Open any report → Customize → Accounting Method → Select Cash
QuickBooks automatically adjusts for open A/R and A/P to show results as if you were on a cash basis. This is perfect if you maintain accrual records but file taxes on a cash basis.
Which Should I Choose?
Option 1: Record payments immediately | Option 2: Record payments separately |
Payments happen at or near closing | There's a delay between invoicing and payment |
You want the simplest bookkeeping | You need to track outstanding amounts |
Still unsure? Your accountant can help you choose based on your business workflow and tax filing method.