Book Keeping Task/Accrual

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Current revision (03:52, 23 April 2019) (edit) (undo)
 
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Consistent with best practices, PCSAR uses the accrual basis of bookkeeping.
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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:
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* [https://www.xero.com/ca/resources/small-business-guides/accounting/cash-vs-accrual-accounting/] ({{link|Image:Members:Cash-vs-accrual-accounting.pdf|cashed}})
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* [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}})
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* [https://strategiccfo.com/cash-basis-vs-accrual-basis-accounting/] ({{link|Image:Members:Cash-basis-vs-accrual-basis-accounting.pdf|cached}})
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* [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.
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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
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* it's considered best practice
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* we often have long periods before we are paid by tasking agencies
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* we sometimes have long periods before we pay member expenses
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* 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