Bookkeeping
Accrual basis bookkeeping
Accrual bookkeeping for Canadian businesses from Finbryn: revenue recognized when earned, expenses when incurred, receivables and payables kept current, and GST or HST tracked on its own line, all reconciled monthly under ASPE or IFRS in QuickBooks Online, Xero or Sage 50.
Bank reconciliation summary
Illustrative client · August 2026
CAD
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri, Aug 28, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
Why accrual matters here
Most Canadian businesses are required to report income to CRA on an accrual basis, and any business seeking a bank facility, an investor or a franchise agreement will be asked for the same. Accrual books show what has actually been earned and owed, not only what has moved through the bank.
What stays current
Accounts receivable and accounts payable are kept up to date, prepaid expenses and accrued costs are tracked and reversed on schedule, and GST or HST collected and paid sits on its own line separate from operating results, reconciled every month.
Built for the standard you report under
Most private Canadian corporations report under ASPE; some choose IFRS, particularly if a foreign parent or investor requires it. We keep the ledger consistent with whichever standard your financial statements are built to, without providing the formal accountant's report a review or audit engagement would need. That stays with a provincially licensed public accountant.
Feeding into the T2
Clean accrual books mean your year-end preparer is working from agreed receivables, payables and accruals rather than reconstructing them, ahead of the T2 filing deadline six months after your tax year end and the earlier payment deadline that generally falls two to three months after year end.
Delivered the same way every month
Work happens in QuickBooks Online, Xero, Sage 50 or NetSuite for larger files, done by a named pod, with every file reviewed by a senior principal before it reaches you. See cash basis bookkeeping if a simpler view fits better, or pricing for the published rate.
Questions
Frequently asked questions: Accrual basis bookkeeping
Does my business have to report on accrual to CRA?
Most do, outside farming and fishing, which have a recognized cash-method option.
Do you provide the accountant's report a bank or investor might ask for?
No. We keep accrual books to a consistent standard; a formal review or audit report comes from a provincially licensed public accountant.
Can you convert our cash-basis history into accrual?
Yes, rebuilding receivables, payables and accruals for prior periods so nothing breaks in the comparison.
What exactly is included in accrual basis bookkeeping?
Revenue recorded when earned, not only when collected, and accounts receivable and accounts payable kept current. This work runs inside QuickBooks Online or Xero, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
What happens to our accrual basis bookkeeping records if we switch providers?
Everything stays inside your own QuickBooks Online or Xero account, so the full history transfers with the subscription, not with Finbryn. You can hand accrual basis bookkeeping to another provider or bring it in-house at any point without losing a reconciliation or having to rebuild the file first.
Why would my business need accrual instead of cash basis?
A bank covenant, an investor, or growth past a revenue threshold often requires accrual reporting under your region's accounting framework.
Can you convert cash-basis history into accrual?
Yes. We rebuild receivables, payables and accruals for prior periods so the switch does not lose comparability.
What software works with accrual basis bookkeeping?
Accrual basis bookkeeping 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.
How do we get started with accrual basis bookkeeping?
Getting started with accrual basis bookkeeping begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
Related services
- BookkeepingCash basis bookkeepingBooks kept on a cash basis, recording income and expenses when money actually moves, for owners who want simple books that match their bank balance.
- BookkeepingChart of accounts designA chart of accounts built around how your business actually operates, so reports answer real questions instead of forcing everything into generic categories.
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.