DX1 runs on an Accrual accounting basis recognizing Sales and COGS when a unit or part is sold.

Cash Accounting              Vs.         Accrual Accounting

Recognize income when money is received

Recognize income when sale is completed regardless of when money is taken

Recognize expenses when money is spent

Recognize COGS when a unit is sold regardless of when the expense is paid for

No Accounts Receivable

Tracks Accounts Receivable

No Accounts Payable

Tracks Accounts Payable

Taxes paid when money is received

Taxes accrue on current sales rather than money received

Mostly used by small businesses and sole proprietors with no inventory

See IRS Publication 538 for requirements for accrual accounting