Bookkeeping
Accrual basis bookkeeping
Accrual bookkeeping matched to IFRS for SMEs or your member state's local GAAP, recognising income and expenses when they are earned or incurred so reports reflect the real state of an EU business.
Bank reconciliation summary
Illustrative client · August 2026
EUR
| 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, 28 Aug, 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.
Accrual as the EU default
Once a business incorporates properly in a member state, most local GAAP frameworks and IFRS for SMEs expect accrual accounting rather than a simple cash record. Revenue is recognised when it is earned, not only when the invoice is paid, and costs are matched to the period they belong to.
Finbryn keeps receivables and payables current, tracks accrued expenses and prepaid items on a set schedule, and closes each month with a profit and loss statement and balance sheet a registered local partner, lender or investor can rely on.
Cross-border consistency
A business with entities or branches in more than one member state needs accrual figures that line up regardless of which country's GAAP applies locally. We keep one internal chart of accounts mapped to each entity's local basis, so consolidation later does not mean rebuilding history. Where a France or Germany entity needs statutory accounts certified for filing, we hand the accrual-basis books to your registered local partner, expert-comptable or Steuerberater, in a state ready for that certification rather than needing rework first.
Investors, lenders and a consistent number
A business raising money or applying for a facility from a bank based in a different member state than its own often finds the lender wants figures on a basis it recognises. Accrual accounting under IFRS for SMEs gives that lender a number it can compare against other applicants, rather than a cash figure that moves with timing rather than performance.
Questions
Frequently asked questions: Accrual basis bookkeeping
Why would an EU business need accrual rather than cash basis?
Formal incorporation, a bank facility, an investor, or the local GAAP your member state applies usually requires it.
Can you convert prior cash-basis history into accrual?
Yes. We rebuild receivables, payables and accruals for prior periods so the switch does not lose comparability.
Do you certify the statutory accounts yourselves?
No. We prepare the accrual-basis books; certification and filing in states like France or Germany go through your registered local partner.
How do you decide when revenue should be recognised under accrual?
Revenue is recognised when the service is delivered or the goods ship, not when cash is received, following the same principle IFRS 15 and most local GAAP frameworks apply to distinct performance obligations within a contract.
Does accrual basis require more from us each month than cash basis?
A little more: we need visibility into outstanding invoices, unbilled work and known upcoming costs so accruals can be estimated accurately, on top of the bank and card feeds cash basis already relies on. We tell you exactly what is needed the first time it comes up, not repeatedly.
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.