Does IC go by cash-basis, or accrual-basis accounting?

IC works on a cash-basis by default, but you can go by accrual-basis if you prefer.

All reporting in IC goes by the "Paid Timestamp" of transactions, which suggests cash-basis accounting (aka recording transaction amounts as having occurred when they were actually received/paid).

(This is because distributors and other income sources often make royalty data available prior to paying it out, but it's very rare for catalogs to pay out royalties on income they have not yet actually received. This is why we build in known "lag times" — the time between when you get access to the data and when you get paid for it — into our importers. This lets you import data files as soon as you receive them, while not being on the hook for paying out royalties until you've actually been paid.

That said, catalogs can still do accrual-basis accounting (aka recording the paid timestamp of transactions as the date when you get a bill or raise an invoice - in IC) by using Paid Timestamp overrides.

To do so for Data Imports, simply enter the date you want to use in the Paid Timestamp field, and check "Replace all values".

To help you be consistent with this, we'd suggest using the optional Name field as well, naming the imports something like "May 2024 Digital Income (Accrual Basis)").

And then when you're adding manual and additional transactions, be sure to also go by accrual-basis when filling out the Paid Timestamp fields.

As long as you're consistent, accrual-basis accounting in IC is within your grasp 🙂