The accrual basis posts sales the minute you write an invoice or post a sales receipt, and posts your expenses as soon as you post the bills into the computer. Accrual basis accounting gives you a clearer picture of where your company is financially than cash basis accounting does. The cash basis is when you record bills by writing cheques - expenses are posted only when you write the cheques. Doing business on a cash basis may be simpler, but the only way you'll know how much money you owe is by looking at the pile of bills on your desk.
If you're new to bookkeeping, you may want to go through the interview step-by-step with a tutor at your side. For more details, check out QuickBooks 2005 For Dummies (Wiley) - this book can teach you almost everything you need to know about QuickBooks.
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