📍 Where to find this module?
Main menu > Finances > Fiscal years
Introduction #
Cash accounting is a simplified accounting method in which entries are recorded at the time of actual receipt or disbursement, and not on the date the document (invoice, credit note) is issued. This method is authorized in France for certain categories of companies (BNC, micro-enterprises, certain BIC).
In Kafinea, cash accounting is activated at the fiscal year level.
1. Activating cash accounting #
To activate this mode:
- Go to Finances > Fiscal years
- Open the relevant fiscal year
- Check the Cash accounting option
Important: This choice applies to the entire fiscal year. It is recommended to define it as soon as the fiscal year is created, before recording any transactions.
2. Differences with accrual accounting #
| Aspect | Accrual accounting | Cash accounting |
|---|---|---|
| Entry date | Document issue date | Actual payment date |
| Receivables and payables | Recorded upon issuance | Recorded only upon payment |
| Complexity | More complete, more complex | Simpler, less detail |
| Target audience | All companies | Liberal professions, small structures |
3. How it works in Kafinea #
When cash accounting is activated:
- Invoices and credit notes do not generate accounting entries when they are issued
- Accounting entries are generated only when a payment is recorded
- Entries are recorded in the cash journal on the date of payment
Good to know: At the end of the fiscal year, it may be necessary to record remaining receivables and payables to establish the balance sheet. This adjustment can be carried out via manual entries.
4. Frequently asked questions #
Can I change modes during the fiscal year?
It is technically possible to modify the option, but this is strongly discouraged during the fiscal year because entries already generated will not be recalculated. The change of accounting mode should ideally take place at the beginning of a new fiscal year.
Is cash accounting compatible with VAT?
Yes. In cash accounting, VAT is declared on receipts (collected VAT) and disbursements (deductible VAT), in accordance with the VAT on receipts scheme.
Which companies can use cash accounting?
In France, this mode is mainly used by liberal professions (BNC) and companies under the simplified tax regime (BIC). Consult your accountant to check your eligibility.