Cash Flow Report Problem

[Mike or Penny Novack]

>When I started doing the non-profits, I simply "copied" my activities
>that I had done for the consulting business, read use the Cash Flow
>report to generate the P&L. But the reality of the non-profits is that
>there are no "Accrual" accounts (A/R or A/P). In other words all the
>transactions are cash based. So, until this morning I had not
>entertained the idea of going back to the built-in P&L because Cash Flow
>was working whether I had Accrual accounts or not.
>
>--Rob
>
>  
>
Whether "cash flow" could be used that way depends on all of the cash 
affecting transactions of the non-profit being "income" or "expense", 
never something else. For example, a non-profit gets to choose its 
policy for fixed assets and their depreciation, but whatever policy it 
adopts it has to use. The ones for which I keep books have a high enough 
"de minimum" that USUALLY durables purchased can be expensed immediately 
but not ALWAYS and when one of those special situations arises will be 
for a largish amount.

Possibly non of the non-profits for which you keep books run into this?

Also, while it is common for non-profits to sometimes choose to use 
business features like A/R to track memberships (be able to produce 
membership statements) it isn't REALLY accrued income for them when 
invoiced. While a formal "pledge" to a non-profit can be properly 
considered a receivable, a membership carries no obligation to continue 
as a member.

Michael