Close & reporting
Accruals
Expenses and revenue recorded in the period they actually happen, including GST and super obligations, even when the invoice or the fund contribution has not moved yet, so each month's numbers reflect that month's activity rather than whenever the paperwork arrives.
Management report
Illustrative client · August 2026
AUD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Why accrue
An expense belongs to the month it was incurred, not the month the invoice happens to arrive, which can be weeks later. We review a recurring accrual list each month, covering items like utilities, professional fees and payroll, and record accrued revenue for work delivered but not yet invoiced. Prior-month accruals reverse once the actual invoice or payment lands.
Super and Payday Super
From 1 July 2026, Payday Super requires compulsory super contributions, 12% of qualifying earnings, to reach an employee's fund within seven business days of payday, which changes how the super accrual sits against the cash payment in each pay run. We accrue the liability for the period it relates to and reconcile it against what actually left the account.
GST timing
Where GST is reported quarterly (28 October 2026, 28 February 2027, 28 April 2027 and 28 July 2027 for the 2026-27 year) rather than monthly, the accrual keeps the liability visible on the balance sheet between BAS periods instead of only appearing when the return is prepared.
Cash-basis businesses
Not every business runs accrual books for tax purposes, but many still want an accrual view for management decisions, which we maintain alongside the cash-basis figures your tax agent uses for lodgement.
Keeping the list current
The recurring accrual list is reviewed every month rather than set once and forgotten, so a new subscription, a new lease or a change in payroll gets added before it is missed rather than caught in a later cleanup.
Questions
Frequently asked questions: Accruals
How does Payday Super change the super accrual?
Compulsory super contributions move to reaching an employee's fund within seven business days of each payday, so the accrual and the cash payment sit closer together than under a monthly or quarterly rhythm.
Do accruals apply if we run cash-basis books for tax?
Not for tax reporting, but many cash-basis businesses still want an accrual view for management decisions, which we can maintain alongside the cash-basis books your tax agent uses.
Does the accrual track our GST liability between BAS periods?
Yes. The accrual keeps the GST liability visible on the balance sheet between quarterly or monthly BAS periods rather than only at lodgement.
Who decides which accruals get booked each month?
We identify likely accruals from known commitments and prior patterns and confirm judgement calls with you before posting, particularly for larger or unusual amounts.
How is accrual preparation priced?
Usually included within standard monthly close pricing, since accruals are part of getting the month-end numbers right rather than a separate add-on service.
Why record an expense before the bill arrives?
So the month it belongs to carries the cost, rather than the month the invoice happens to show up, which can be weeks later.
Do accruals apply if I run cash-basis books?
Not for tax reporting, but many cash-basis businesses still want an accrual view for management decisions, which we can maintain alongside the cash-basis books.
How is accruals priced?
Pricing for accruals depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with accruals?
Accruals runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Related services
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.