ZipBooks Update: Cash Reports & Easy Transfers


Posted 3 months ago in Small Business Tips
by Brad Hanks

Hey ZipBookers,

We want to let you know about some great new changes that we’ve made for you.

Here we go!

Cash vs. Accrual Basis Reporting

cash-basis accounting reports

When you complete a job for someone, and then send them an invoice, you’ve technically earned revenue for your business. But the question is: when do you count it as income? When you bill for it, or when you actually get paid?

Hmm. . . That’s a good question!

And the answer is: it depends on the situation. You should use what’s called the “accrual” method if you need an accurate, precise snapshot of actual expenses incurred and revenues earned as they occur, even if no money has actually changed hands. And you should use the “cash” method if you need to maintain a current record of how much cash you have on hand so you can budget accordingly.

 
Cash Reports
When  you need to report your financial information for things like obtaining a loan, remember to present both expenses and income using the same method.

When it comes to your own reporting, you might prefer one method more than the other. And now you can easily switch between methods using your Zipbooks account.

Go to my income statement

Easier to Distinguish Transfers

bank transfer transaction

As a business owner, you probably move money around all the time. You pay off loans and credit cards, transfer money to savings, or maybe divide it between separate checking accounts. Now Zipbooks makes it easy to tell where that money is going or where it came from. The amount will turn blue, and it’ll have a blue arrow next to it pointing to the loan or bank account it was transferred to.

We’re always trying to make ZipBooks more intelligent and better at taking the guesswork out of bookkeeping. Intuitive color-coding lets you see what’s going on at a glance. Green denotes sales or deposits—the value of your business rising—and red means money going out in the form of things like expenses. When you transfer money among your own accounts, your business’s value is really staying the same, not going up or down.

Go to my transactions

Well, that’s it for now, Zipbookers. We’re working on more great features and improvements every day, so we’ll catch you on the next product update!


About Brad

Brad Hanks is in charge of Growth at ZipBooks.