User Guide

Converting a QuickBooks Company
Stepping Through the Conversion Process
251
6 Select OK to begin the conversion.
7 Select an accounting method that you will be using for this company.
The accounting method determines how Peachtree Accounting handles
General Ledger, Accounts Receivable, and Accounts Payable
transactions. Cash and accrual are the two basic accounting methods
used to run a business. You must select the method your company will
use.
• Accrual: The accrual method records all entries at the time business
is transacted, whether or not cash has been transferred. In most
cases, companies that carry inventory or resell goods must use this
method of accounting.
• Cash: The cash method recognizes transactions at the point you
actually exchange cash. While the cash method is more common in
service industries, some organizations may be restricted from using
this method by the IRS.
Typically, the accrual method provides more accurate information
regarding the financial status of your company. The cash method, on the
other hand, may better serve your overall tax status. Consult your
accountant about which method is best for you. If you choose the cash-
basis method, Peachtree will not convert your account balances. For
more information, See “
Setting Up a Cash-Basis Company” on
page 278.
Important: Once you choose the accounting method, you cannot
change it for this company.
8 After selecting your new company’s accounting method, click OK.
A warning message displays giving you one last chance to verify the
accounting method.