All Collections
FAQs and Troubleshooting
FAQ
Accrual Accounting vs Cash Accounting
Accrual Accounting vs Cash Accounting

What is the difference between accrual and cash when viewing your financial stats

Paul Martin avatar
Written by Paul Martin
Updated over a week ago

On the Dashboard page in the admin, you can view your financial graph or the financial stats report based on either an accrual or cash accounting basis.

Accrual Basis accounting includes all payments, both expected and received. Cash Basis accounting only includes payment received. Basically, this means that viewing the financial stats using the accrual basis will include orders that are in 'Awaiting Payment' status, while a Cash Basis will not reflect payments from these orders that hasn't been received.

For more information on Accrual vs cash accounting, check out http://en.wikipedia.org/wiki/Basis_of_accounting. To determine which accounting basis is best suited for your store, we recommend consulting with your accountant.

Did this answer your question?