Cash basis vs accrual: which one Premises uses and why

The two bases

Accrual: income is invoices dated in the month, whether or not paid; expenses are dated when incurred. It answers "what did the building earn". Cash: income is payments dated in the month, whatever month the invoice was for; expenses are dated when paid. It answers "what money moved". Most small Philippine lessors file on a cash basis; most owners think in accrual.

What the platform does

The P&L and the income register can show either; the default is set in Settings › Money and can be flipped on the report itself. My day shows both without naming them: "Billed" is accrual, "Received" is cash. Expenses carry both an incurred date and a paid date, so they move correctly between the views. Deposits are in neither — they are liabilities.

Reading the gap

Accrual minus cash for a month is roughly what was billed and not yet paid — your receivables growth. Positive and growing month after month means collection is slipping even if billed income looks healthy. Negative means old debts were paid down. The trend view plots the gap as its own line.

Which your accountant wants

Ask once. The accountant pack exports on whichever basis you set, and can include both. If you are VAT-registered, the invoice basis matters for output VAT; if you pay percentage tax on receipts, cash matters. The platform labels every export with its basis so there is no ambiguity later.