Buildium supports two of the most common types of accounting; cash basis and accrual basis.
- Cash basis accounting recognizes income and expenses when money actually changes hands, such as when a tenant hands you a rent check or when you write a check to a vendor for an expense.
- Accrual basis accounting recognizes income as soon as an activity or service happened—income is shown as soon as you enter a charge for a tenant’s monthly rent, and expenses will be recognized when a bill is entered. The accounting basis you select doesn’t affect the way Buildium tracks your money, but it will show in our reporting features.
Buildium defaults to cash basis accounting, so if you work with accrual basis accounting, you'll need to update your accounting settings.
Only administrators immediately have access to accounting settings. To give others access to this area of Buildium, you can update their user role.
To tell Buildium how to track your accounting:
- Navigate to Settings > Application Settings.
- Click Accounting.
- Choose which accounting basis you want Buildium to default to, cash or accrual.
- Click Save.