Fixed Assets - Option to Show Depreciation Expense in Cash Basis Reports
This is an ongoing issue for a lot of accountants, as seen in the forums: https://central.xero.com/s/question/0D51N00005Ok9naSAB/regarding-depreciation-not-appearing-on-cash-basis-reports
Ritesh Kapadia
shared this idea
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Peter Joseph
commented
Hi,
This would be very important to show correctly the profit on cash basis.
Thank you
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Natan Gomes Martins da Conceicao
commented
It makes no sense to have the option to use the fixed asset function for cash basis companies. This is a very important routine for me to maintain control over the assets, but it gets in the way when processing the depreciation or selling the asset. As you can see in the attached file, as Xero does not account for depreciation or the sale of fixed assets for cash basis companies, it is necessary to make a manual journal, which theoretically "solves" the accounting problem. But if I need a managerial view based on Accrual basis, my balance sheet is completely distorted as it doubles the depreciation and/or sale of the asset.
Why don't you guys enable this tool on cash basis too?
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Tania Floreancig
commented
This is critical to our firm, we need to run depreciation on a cash basis. I assume we, like many other accounting firms have a large SBE client base and the loss of productivity in having to manually reverse entries and repost is very frustrating.
Had we have known of this issue before converting from Sage Handisoft we perhaps would have had second thoughts. -
Pam van Muijen
commented
This has been an ongoing need since 2014. Had a big argument with our CPA until I realized that the accrual reports show depreciation but the cash reports don't. What in the world...
