Cash vs. accrual
The two ways to record income and expenses — and why your method affects whether you need QuickBooks with Uplinq.
Cash basis records income and expenses when money actually moves — when a payment hits or leaves your account. Accrual basis records them when they're earned or owed — when you invoice a customer or receive a bill, regardless of when cash changes hands.
Most small businesses use cash basis because it follows the money in and out of the bank. Accrual basis is more complex.
If your business needs accrual accounting, Uplinq may use QuickBooks Online for your books. That can apply when you need invoicing, bill pay, inventory, or class tracking.
A simple example
Say you finish a job in March, invoice the customer in March, and get paid in April.
- On cash basis, the income usually shows in April, when the payment arrives.
- On accrual basis, the income usually shows in March, when it was earned.
The same idea applies to expenses. Cash basis follows the payment. Accrual basis follows when the bill or obligation exists.
Why this matters in Uplinq
Your accounting basis affects how Uplinq reads your activity, what source systems matter, and which reports are the right source of truth.
Cash-basis books usually depend most on:
- connected bank and credit card activity;
- statements and merchant processor reports;
- answers to transaction questions;
- documents that explain loans, assets, owner activity, or unusual transactions.
Accrual-basis books may also need:
- invoices and accounts receivable;
- bills and accounts payable;
- inventory;
- class, location, project, or job tracking;
- more detailed QuickBooks Online setup.
How to tell which method you use
A common place to check is the accounting-method box on your last business tax return. You can also ask your Uplinq team if you are unsure.
Do not switch methods in your accounting system without asking first. Changing the basis can affect reports, cleanup work, and tax preparation.
When QuickBooks Online may be needed
QuickBooks Online may be part of your setup when your business needs accrual accounting or accounting features that are not just bank-feed bookkeeping.
Examples include:
- invoice tracking;
- bill tracking;
- inventory;
- class or location tracking;
- a workflow where your team already works heavily in QBO.
Some customers use Uplinq directly. Some use QuickBooks Online with Uplinq. The right setup depends on your service, accounting method, and business complexity.