Chapter 5: Accrual Basis and Cash Basis

Reconciling data upon a switch from ‘Accruals’ to ‘Cash’ basis or vice versa

If you change the accounting basis used for Sales Tax, you may have to make a manual reconciliation and adjustment. For example, if you have been filing sales tax returns on a cash basis in the past, and decide to move to an accrual basis method, some invoices could be reported twice. Since TrustFile includes both Paid and Authorized invoices, you may have invoices that transition from Authorized to paid from the previous period that would be double remitted in TrustFile in the new period.

Reconciliation can be made by manually creating a negative transaction in TrustFile to remove a duplicate transaction on the form. To make a manual adjustment, tap ‘Orders’ and click ‘Add Sales Tax Data’. Enter a manual transaction that cancels out the original, using the same address and amounts.

Alternatively, you can make an aggregate override on the form itself if you know the amount to be credited.