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Xero Accounting app - Ability to change accounting basis for reports in app

Xero app to have accounting basis (profit and loss) able to change from only accrual to cash
You can only see accrual, it is one of the main features of the app for live information, I find it very hard to know how my current month is actually doing unless.

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Steve Orchard shared this idea  ·   ·  Report…  ·  Admin →
delivered  ·  AdminHannah G (Admin, Xero) responded  · 

Hey community,👋 thanks for supporting this idea, I’m popping in to switch it across to delivered! The product team have been releasing this in phases and it’s now available for 100% of users 🎉
First, make sure your app is updated. To change the accounting basis, go to the Profit and loss screen, and on the upper right corner tap Options (iOS) or the 3 dots (Android) to go to ‘Set reporting preferences’.
I also just wanted to confirm that this functionality was already available on the web version check out our article about how to Select settings in a report.  Note that updating this new setting in the mobile app will not change the setting for the web version.

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  • Janelle Sawtell commented  ·   ·  Report

    I am very surprised that Xero does not produce a profit and loss for clients using cash basis for accounting. The cash basis reports are adjusted for cash flow reporting. These reports do not include depreciation. A lot of small business clients account for tax on a cash basis, it is a very basic concept. Xero support gives the following suggestion to rectify the situation which certainly doesn't help to streamline the creation of financial statements process for something which should be standard and is standard in all other accounting packages.

    Support response from Xero

    I can confirm that the depreciation and disposal journals posted from the fixed asset register in Xero are accrual basis, so they don't show on cash basis reports such as the Statement of Cash Flows.

    To include fixed assets disposal amounts on your cash reports, you'll need to add two manual journals:

    One to reverse the Xero-created journal. Ensure that 'Show journal on cash basis reports' is unticked, then click Post.
    Another to add a journal the same as the Xero-created one. Ensure 'Show journal on cash basis reports' is ticked, then click Post.

    The easiest way to locate the correct disposal journal is to click into it from the disposed asset. You will see a 'View journal' link in the History & Notes.

    I've included a link to our support article for more information.

    Xero Central article: Add, import or post manual journals

    Kind regards

    Vilma