LodgeiT currently applies one accounting basis (either Cash or Accrual) to both the Profit & Loss and Balance Sheet reports. 

Importing a Profit & Loss on a cash basis while importing the Balance Sheet on an accrual basis is not currently supported. 

Why is this not supported? 

Reports prepared using different accounting bases may require reconciliation to ensure the financial information is consistent.

For this reason, LodgeiT uses a single accounting basis across both financial reports during import.

Workaround:

If your financial statements are prepared with:

  • Profit & Loss: Cash Basis
  • Balance Sheet: Accrual Basis

you can use the following workaround:

  1. Import your financials into LodgeiT using the Accrual Basis.
  2. Open the Reconciliation section of the tax return.
  3. Convert the taxable income to Cash Basis by making the appropriate adjustments for:
    • Debtors (Accounts Receivable)
    • Creditors (Accounts Payable)

This allows the taxable income calculation to reflect the cash basis while maintaining the imported accrual financial statements.

Related Guide: Cash Basis and Accrual Method for Company, Trust, and Partnership.