What is accrual accounting?
Recording income when it is earned and expenses when they are incurred — not when cash moves. An invoice issued today is revenue today, even if it is paid next month. Accrual is the basis most incorporated Canadian businesses report on, because it shows the truth of a period rather than the timing of its cash.
Example
You invoice $10,000 of work on March 28 with payment due in April. Under accrual accounting the $10,000 is March revenue, because March is when you earned it.
Under cash basis it would be April revenue. The difference matters when March's costs — wages, materials — were also incurred in March: accrual matches them, cash basis separates them by a month.
SeroBooks posts documents to the ledger when they happen, which is accrual accounting by construction. Cash vs accrual guide →
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