HumanBookkeeping.com™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Accrual Method means. If we can be of more help explaining what Accrual Method is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-994-8626.
HumanBookkeeping.com™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Accrual Method means:
There are two basic recording methods that bookkeepers will use in accounting: Cash Basis and Accrual Method. In Cash Basis accounting, revenues and expenses are only recorded when there is a cash transaction, not when a sale or purchase actually occurs. This method is used for personal income taxes, some small business income taxes, and basic corporate accounting. However, the preferred method of corporate accounting is through accrual. Accrual is the process of allocating revenue and related expenses to the period in which the transaction actually occurs, rather than when payment is made or received. Accountants use the accrual method to make financial statements clearer period to period.
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