What is the Difference Between Accrual and Cash-Based Accounting? (QBO/Molo)
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Modified on: Tue, 2 Dec, 2025 at 2:26 PM
- "I’m trying to understand the difference between Cash-Based and Accrual Accounting and which one Molo uses."
- "My accountant mentioned I need Cash-Based reports, but I don’t see a way to run them in Molo."
Resolution Steps
- Understand that Molo supports Accrual Accounting only. There is no reliable method in Molo to generate Cash-Based reports.
- Recognize that QuickBooks Online (QBO) offers a Cash-Based reporting option for marinas that require this accounting method.
- Review the differences between the two accounting methods:
- Accrual Accounting: Records transactions when they are earned or incurred, regardless of when cash changes hands.
- Cash-Based Accounting: Records transactions only when money is received or paid.
- Verify that all Molo financial reports (including Invoices, A/R, and related exports) are generated using Accrual Accounting.
- Use QBO’s Cash-Based reporting if a facility requires that reporting perspective for reconciliation or tax purposes.
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