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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

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Ritesh Kapadia shared this idea  ·   ·  Report…  ·  Admin →
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Not in pipeline  ·  AdminKelly Munro (Community Manager, Xero) responded  · 

Hi community, we appreciate your insights on this idea. We recognise that having depreciation excluded from the Cash basis P&L can limit how useful the report is for understanding overall business performance.

The distinction you’ve highlighted between a cash basis Profit and Loss report and a Statement of Cash Flows is a helpful one and gives us a better sense of why this feature matters for your reporting and compliance needs.

For now, creating manual journals is the only available option to include depreciation in cash basis reports. While not ideal, it’s a feasible approach if you need to reflect these adjustments.

We want to be upfront here that this isn't something we have roadmapped right now, and not likely to be planned soon.

This may be something we revisit in the future and will make sure to share any updates if the situation changes.

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  • Sherrie Dunnings commented  ·   ·  Report

    Oh this is surely a quick fix for reports?
    Essential to our work. Please prioritize Xero!

  • Rhiannon Jones commented  ·   ·  Report

    Each month I am having to manually enter journals to record the depreciation which is calculated using the Asset Register. It's crazy that depreciation wouldn't show on a cash basis report. Hoping it gets fixed soon!

  • Navjot Kaur commented  ·   ·  Report

    Many of our clients use cash basis - It is getting very hard to setup the fixed assets first and then go through the process of entering the depreciation through a manual journal. Please FIX it.

  • Jasmine Liu commented  ·   ·  Report

    I don't understand how the cash basis report would exclude the depreciation. Shouldn't all manual journals be cash basis? Why the depreciation is different?

  • Lisa McMahon commented  ·   ·  Report

    Hi, I spend hours each month doing manual journals for my clients to get the fixed assets in the profit and loss as most of my clients are on cash accounting. Hopefully this can be fixed soon.

  • Mark Sharman commented  ·   ·  Report

    In which parallel universe is it a good idea for the accounting software vendor to make deprecation journals and the cash basis of accounting incompatible?

  • Tony Jensch commented  ·   ·  Report

    I am having more requests from cash basis reporting clients who want to run an asset register (Fixed Assets) and have reporting visibility on cash basis reports for immediate asset write off/depreciation

  • Kerryn Gooding commented  ·   ·  Report

    Having a lot of micro businesses on STS, this is one of the reasons we have retained handiledger to prepare financial statements. Come on Xero, a **** of a lot of your customers will operate on a cash basis!

  • vonda henry commented  ·   ·  Report

    I would like to be able to run depreciation on cash basis financials without having to make two journal entries. Can we have a button that said (cash basis with depreciation)

  • Tash Lennon commented  ·   ·  Report

    Definitely something that needs to be fixed, too much time spent to try and fix only to then realise it was a Xero issue and not a user issue. Very frustrating!

  • Sheldon Rennie commented  ·   ·  Report

    Please fix immediately! otherwise there no piont to recommend customers to use xero.

  • Richard Li commented  ·   ·  Report

    Please fix immediately! otherwise there no piont to recommend customers to use xero.

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