Everything About Accrual Accounting

AccountingSmall BusinessBookkeepingTaxFinancial ReportingAccrual Accounting

How to Convert from Cash Basis to Accrual Accounting: A Step-by-Step Guide

Learn how to convert from cash basis to accrual accounting step by step. Covers the four key adjustments (receivables, accrued expenses, prepaid expenses, deferred revenue), IRS Form 3115 filing requirements, Section 481(a) adjustments, common mistakes, and tips for a smooth transition.

AccountingSmall BusinessBookkeepingFinancial StatementsAccrual AccountingRevenue RecognitionFinancial ManagementCash Flow

Unearned Revenue: What It Is, How to Record It, and Why It Matters

Learn what unearned revenue is, why it's classified as a liability, how to record it with journal entries, real-world examples from SaaS to gift cards, tax implications, and best practices for managing deferred revenue.