Cash accounting with Quickbooks Pro

This is the second article in a series on setting up and using QuickBooks Pro (QBP). In the first article (see “Setting Up QuickBooks Pro for Construction,” 9/97), I described the step-by-step procedure for setting up the software using either Items or Classes, and offered suggestions on how to organize job costs into phases that match your estimating categories. In this article, I’ll show you how to enter expenses and deposits. QBP can perform both cash- and accrual-based accounting. Accrual accounting requires you to record expenses when they are incurred, whether or not you’ve paid them yet; you must also record income when the statement is sent, whether or not you’ve been paid. Cash