sasha wants to generate a balance sheet to see accounts receivable. which quickbooks report basis would be most useful?

To generate a balance sheet that highlights accounts receivable in QuickBooks, the most useful report basis would be the Accrual Basis. Here’s a detailed explanation:

1. Understanding Report Bases: In QuickBooks, financial reports can be generated on either a cash basis or accrual basis.

   • Cash Basis: This method records revenues and expenses when cash is actually received or paid. As a result, this basis does not provide a comprehensive view of outstanding customer debts since it only reflects transactions that have been completed.
   • Accrual Basis: This method records revenues when they are earned and expenses when they are incurred, regardless of when cash is exchanged. This allows a complete view of accounts that are still due from customers.

2. Importance of Accrual Basis for Accounts Receivable: Since accounts receivable represents amounts that customers owe you for goods or services that have been delivered but not yet paid for, using the accrual basis will ensure that all outstanding invoices are reflected in the balance sheet. This gives Sasha a true picture of what is owed, helping her to make informed business decisions.

3. Generating the Report: To generate an accrual basis balance sheet in QuickBooks:

   • Go to the Reports menu.
   • Select "Company & Financial."
   • Choose "Balance Sheet."
   • Set the report basis to "Accrual."

By following these steps, Sasha will have a clear view of her accounts receivable on her balance sheet.