Book Keeping Task/Accrual
From PCSAR
< Book Keeping Task(Difference between revisions)
(New page: Consistent with best practices, PCSAR uses the accrual basis of bookkeeping. The alternative is the cash basis. For an explanation of the differences, see these articles: * [https://www.x...) |
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| - | + | PCSAR uses the accrual basis of bookkeeping. | |
The alternative is the cash basis. | The alternative is the cash basis. | ||
For an explanation of the differences, see these articles: | For an explanation of the differences, see these articles: | ||
| - | * [https://www.xero.com/ca/resources/small-business-guides/accounting/cash-vs-accrual-accounting/] ({{link|Image:Members:Cash-vs-accrual-accounting.pdf|cashed}}) | + | * [https://www.xero.com/ca/resources/small-business-guides/accounting/cash-vs-accrual-accounting/ overview 1] ({{link|Image:Members:Cash-vs-accrual-accounting.pdf|cashed}}) |
| + | * [https://strategiccfo.com/cash-basis-vs-accrual-basis-accounting/ overview 2] ({{link|Image:Members:Cash-basis-vs-accrual-basis-accounting.pdf|cached}}) | ||
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| + | In Canada, most businesses use the accrual method, as [https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/accounting-methods.html that is a requirement] of the Canada Revenue Agency. | ||
| + | However the CRA allows Charitable Organizations to use [https://www.canada.ca/en/revenue-agency/services/charities-giving/charities/operating-a-registered-charity/financial-statements.html either the accrual or cash basis]. | ||
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| + | PCSAR uses the accrual basis because | ||
| + | * it's considered best practice | ||
| + | * we often have long periods before we are paid by tasking agencies | ||
| + | * we sometimes have long periods before we pay member expenses | ||
| + | * the matching of bills with payments creates an extra method of verification | ||
Current revision
PCSAR uses the accrual basis of bookkeeping.
The alternative is the cash basis. For an explanation of the differences, see these articles:
In Canada, most businesses use the accrual method, as that is a requirement of the Canada Revenue Agency. However the CRA allows Charitable Organizations to use either the accrual or cash basis.
PCSAR uses the accrual basis because
- it's considered best practice
- we often have long periods before we are paid by tasking agencies
- we sometimes have long periods before we pay member expenses
- the matching of bills with payments creates an extra method of verification
