The basis a report uses changes the numbers you see, so the same period can show a different surplus depending on which one you pick. Here is what each basis means, when to use it, and how ImpactGraph applies it to each report.

Accrual basis records activity when it is earned or incurred, not when the money moves. A grant counts as revenue the moment it is pledged. A bill counts as an expense the moment it is entered, even if you have not paid it yet.

Cash basis records activity when the money actually moves. Revenue counts when you collect it. An expense counts when you pay it.

A small example shows the gap. Say a funder pledges a $500 grant this month but the money has not arrived, and you enter a $300 bill that you have not yet paid:

Same two events, two different pictures. Neither is wrong. They answer different questions.

Use accrual for board reporting, funders, and audits. Accrual is the basis behind GAAP (Generally Accepted Accounting Principles), the standard rulebook for how financial statements are prepared in the United States. It matters because your auditor expects statements that follow it, and funders and boards trust numbers built on a recognized, consistent standard. Accrual also gives the truest picture of your financial position, because it counts what you are owed and what you owe.

Use cash when the question is what actually hit the bank. It answers "how much did we really collect and spend?" and it is the clearer lens for runway and day-to-day liquidity.

If you are not sure, accrual is the safer default for formal reporting. Cash is the quick read on your bank reality.

Not every report lets you choose, because some only make sense on one basis. Here is how each one behaves:

On the two reports where you choose, the control is a checkbox labeled Use Accrual Accounting in the report's advanced options. Check it for accrual. Leave it unchecked for cash. Its caption reads "Use GAAP principles instead of cash basis."

The Statement of Financial Position is always on accrual, so it has no basis control. A balance sheet only makes sense when it counts what you are owed and what you owe at that moment. The Statement of Cash Flows has no basis control either, because it reports cash movement by its nature.

In the report picker, the Statement of Activities is currently labeled Profit and Loss Statement. Same report.

ImpactGraph keeps your books on accrual underneath. When you ask for an accrual report, it shows that activity directly. When you ask for a cash report, it adjusts the accrual numbers by what is sitting in Accounts Receivable (money owed to you, billed but not yet collected) and Accounts Payable (money you owe, entered but not yet paid). Revenue you have not collected comes out, and expenses you have not paid come out. What is left is the cash picture.

Your organization has a default basis, and reports start on it. The default is cash unless it has been changed for your account. The per-report Use Accrual Accounting checkbox always wins for a single run, so you can switch the basis for one report without changing anything else.

The Budget vs Actuals Excel export supports cash basis only. If Use Accrual Accounting is on, the Excel export is disabled, and a tooltip reads "Excel export currently supports cash basis only. Switch off Use Accrual Accounting to export." Turn off the checkbox to export to Excel.

For board packets, audits, and funder reporting, run on accrual. For a fast check on what you actually have in the bank, switch to cash. The account types behind your chart of accounts also shape what shows up on each report, covered in How your account types shape your reports.