Switching Accounting Methods - Accrual to Cash
Please Read Before Continuing!
- Switching Accounting Methods is to be done by an experienced Auditor or experienced TOPS [ONE] CAM accountant.
- We do not recommend switching accounting methods during a fiscal year. Best practice is to wait until year end to switch methods.
- Determine a single date for all new journal entries, and As of date to pull reports. This will ensure that everything is done correctly and without bringing issues to the new accounting method.
1. Pay, Cancel or Delete all Open Invoices.
a. Cancel Bill
b. Delete Bill
All Canceled/Deleted bills will need to be reentered after the accounting method is changed.
2. Run the Aged Owner Balance report for all charge Codes.
a. If the report pulls results, scroll to the Summary at the bottom of the report, then proceed to Step 3.
b. If the report does not show any results, skip to the Prepaids section.
3. All accounts listed in summary will need to be zero'd out all using Journal Entries.
The Receivable accounts will be listed on the report.
The Offset account can be found on the individual Assessment Code Page
When creating the Journal Entry, make sure to use the same date used when pulling the report.
Example Journal Entry for the A1 code above:
Note it has the same date, and amount used in the report.
Prepaids in a Cash environment can be run through either a liability or an income account.
4. If the prepaids are going to be updated to run through an income account, instead of the liability account, then a Journal Entry will be needed to zero out the existing liability account.
Debit to the Prepaid Liability account
Credit into the new Prepaid Income account (which would need to be added to the Chart of Accounts).
The amount of this Journal Entry can be found in the Prepaid Owners report, using the same date used in the previous steps.
Change Accounting Method
5. Go to the Community Profile page, then scroll to Accounting Setup.
6. Under Accounting Settings, click Edit
7. Select Cash then Ok
8. Click Save
9. Once the changes have been made, check the codes income accounts to verify the changes.
10. Re-enter the invoices that were canceled/deleted.