Bookkeeping
Accrual basis bookkeeping
Accrual basis bookkeeping matches revenue to the period it was earned and expenses to the period they were incurred, under US GAAP. Finbryn keeps accrual books for US businesses that answer to a lender, an investor or their own growth, reviewed by a senior principal each month.
Bank reconciliation summary
Illustrative client · August 2026
USD
| 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.
What accrual reporting actually changes
Under accrual accounting, a sale counts as revenue when the work is delivered or the product ships, not when the invoice is paid. A bill counts as an expense when it is incurred, not when it is paid. The result is a profit and loss statement that reflects the economics of the period, and a balance sheet that carries receivables, payables and accruals instead of hiding them.
Monthly work
Each month we book revenue against delivery or invoicing milestones, keep accounts receivable and accounts payable current, record accrued payroll and other expenses that have not yet been paid, and reverse prepaid items on schedule. Bank and card accounts are reconciled the same way as under cash basis; the difference is what else sits on the balance sheet alongside the cash.
Who actually needs this
A venture-backed startup reporting to investors, a company with a bank covenant tied to financial ratios, a business past the IRS accrual threshold for tax purposes, or any company where cash timing distorts the real picture of performance, usually needs accrual books rather than cash basis.
Converting from cash basis
We rebuild receivables, payables and accruals for prior periods when converting an existing cash-basis file, so year-over-year comparisons still hold up after the switch rather than breaking at the transition point.
Where this connects
Accrual books work hand in hand with a properly built chart of accounts and, for companies with inventory, inventory accounting with real cost of goods sold rather than an estimate.
Questions
Frequently asked questions: Accrual basis bookkeeping
Does the IRS require accrual accounting for my tax return?
Certain C corporations above a gross-receipts threshold, and businesses that carry inventory, generally must use accrual for tax purposes. Below that, the choice is often yours, and it does not have to match your internal financial reporting basis.
Can our books be accrual for investors and cash basis for taxes?
Yes, that split is common. We keep the accrual set for management and investor reporting and hand your tax preparer whatever basis your return actually requires.
How long does converting to accrual take?
It depends on how far back receivables, payables and accruals need to be rebuilt. A single prior year is usually a few weeks; several years takes longer and is priced as a catch-up engagement.
What does accrual basis bookkeeping actually include, month to month?
Accrual basis bookkeeping covers revenue recorded when earned, not only when collected, along with accounts receivable and accounts payable kept current. The work runs inside QuickBooks Online, Xero, NetSuite or Sage Intacct, the file stays under your own subscription, and a senior principal reviews the output before it reaches you each period.
What access do you need to start accrual basis bookkeeping?
View or edit access to QuickBooks Online, Xero, NetSuite or Sage Intacct is enough to begin; nothing about your existing subscription or login changes on our side. Any additional access needed for a specific deliverable, such as a bank portal or receipt inbox, is agreed with you first, and the scope is set out in your engagement letter.
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
- SaaSBookkeeping and reporting for subscription software businesses tracking recurring revenue, deferred revenue and burn.
- Startups and VC-backed companiesBookkeeping and reporting for early-stage, venture-backed companies watching burn, runway and investor reporting closely.
- ManufacturingBookkeeping for small and mid-size manufacturers tracking raw materials, work in process and finished goods inventory.
- Construction and job costingBookkeeping for contractors and builders who need cost and profitability tracked by job, not just by month.
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.