Can I pay the property fee in cash?

Answer: If the property management company is an enterprise, it generally does not need cash basis, which does not meet the requirements of the accounting standards for business enterprises and cannot accurately calculate taxes and fees.

What's the difference between accrual basis and cash basis?

Accrual basis is a method to determine the current income and expenses according to whether they belong to the current period or not.

Cash basis is a method to determine the current income and expenses according to the actual income and expenses received or paid in the current period.

Accrual basis and cash basis treat income and expenses differently, so the same accounting item may be treated on different accounting bases, and the result may be the same or different.

There are the following differences between accrual basis and cash basis:

Because the accrual basis has problems such as prepaid expenses and accrued expenses, but the cash basis does not have these problems, the accounting subjects they set are not exactly the same.

Because accrual basis and cash basis have different principles for determining income and expenses, their total income and expenses may be different even if they are calculated in the same business at the same time.

Because the attribution and proportion of income and expenses are based on accounts receivable and accounts payable under accrual basis, the calculated profit and loss are more accurate, while the actual receipt and payment of funds are based on cash receipt and payment, so the calculated profit and loss are not accurate enough.

It is troublesome to calculate the profit and loss after adjusting the ending account book records on the accrual basis, but it is simple to calculate the profit and loss without adjusting the ending account book records on the basis of cash receipt and payment.

Can I pay the property fee in cash? Through the above introduction, are you clear? Generally speaking, cash basis is not used to calculate property fees. If you want to calculate the income and expenditure of property fees separately, you can set up a separate cash account to record the income and expenditure of property fees separately. However, it is not appropriate to adopt cash basis for all accounts.