Accrual or Cash Basis for Profit & Loss Reports in QuickBooks

My recommendation is that business owners view their business Profit & Loss report in accrual basis. This method more accurately matches their expenses with the related revenue in the same accounting period. The business’s accountant can then review the data in either cash or accrual basis reports. For more information on sharing data with an accountant, see Chapter 15 of the QuickBooks 2010 Solutions Guide.

From Laura Madeira’s QuickBooks 2010 Solutions Guide