Understand Accounting in Essentials

Learn how Essentials handles accounting by using the Open Accrual method so you can correctly interpret reports, integrations, and financial tracking.

Topics Included in This Article

• Essentials Accounting Method

• Posting Income in Essentials

• Limitations and Flexibility

• Integration with QuickBooks Online and Xero

• More Information / FAQ

Step-by-Step Instructions

Essentials Accounting Method

• Essentials always runs on the Open Accrual method.
• You cannot switch to Closed Cash or other accounting methods.
• All financial tracking in Essentials follows Open Accrual.

Posting Income in Essentials

1. When you send out a contract, the system immediately posts income.
2. This occurs regardless of whether payment has been received.
3. Payments are tracked separately and do not change the timing of income posting.

Limitations and Flexibility

• You cannot change the default accounting method in Essentials.
• However, you can:
  • Run reports in other formats (e.g., cash-based) for analysis.
  • Export data for external review or integration into other systems.

Integration with QuickBooks Online and Xero

• Essentials integrates with:
  • QuickBooks Online
  • Xero
• Both integrations use the Open Accrual method only.
• Closed Cash or alternate accounting methods are not supported for core accounting mode.

More Information / FAQ

Q: Can I change the accounting method in Essentials?

A: No. Essentials always uses Open Accrual.

Q: How do I view cash-based data if Essentials uses accrual?

A: Run or export supported reports in a cash format for analysis, then review externally or alongside accrual reports.

Q: Will Essentials integrate with desktop versions of QuickBooks?

A: No. Only QuickBooks Online and Xero are supported.

Q: Does sending a quote post income?

A: No. Income is posted when a contract is sent out, not at the quote stage.