Book Keeping Task/Accrual
From PCSAR
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
