Does Total Office Manager® use the cash or accrual method of accounting?
Total Office Manager does all accounting on the Accrual method of accounting. This method is absolutely crucial to keeping accurate useful books. Bills are counted as liabilities when received; invoices are counted as income when generated. If you file your income taxes on a cash basis, you can still practice accrual-based accounting for management purposes. Your accountant will be able to use your accrual reports to file on a cash basis.
If the user chooses to use a cash basis, they simply skip the Enter Bills step and write Checks as they actually pay the bills. They would also skip the Enter Credit Card Charges step. Invoices would be entered when the payment is received. We don’t recommend doing any of that.
For more information, please read this post on cash and accrual accounting.