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#accrual-accounting

Accrual Accounting

Accrual method accounting principles, conversion from cash basis, and revenue recognition timing

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10 min read

Washington's Homeowner Recovery Program Is Live: How Contractors Should Reserve for Judgment Claims That No Longer Go Away

Since July 1, 2026, Washington homeowners can collect up to $25,000 of an unpaid contractor judgment from the state's Homeowner Recovery Program, after which L&I can pursue the contractor for reimbursement with interest on payment plans of up to 36 months. This guide explains the eligibility rules, the post-2024 bond levels of $30,000 general and $15,000 specialty, and how a residential contractor should log disputes, accrue probable losses under ASC 450, fund a separate cash reserve, and amortize a state repayment plan in a plain-text ledger.

Mike Thrift

constructionsmall-businessrisk-management
13 min read

Surf Shop and Dive Shop Bookkeeping: Why Your Best Season Can Still Leave You Broke by October

A surf or dive shop is six businesses under one roof — school, retail, travel, rental, air fills, and repair — sharing one seasonal cash window. Learn how separate revenue lines, deferred-revenue accounting for prepaid lessons, and 12-month cash forecasting that isolates inventory purchases reveal which business actually profits and whether summer funds the winter.

Mike Thrift

seasonal-businessbookkeepingsmall-business
17 min read

Wholesale Distributor Bookkeeping: Freight-In, Vendor Rebates, and Consignment Inventory

A guide to the three bookkeeping fault lines that distort a wholesale distributor's margin and balance sheet — capitalizing freight-in into landed cost, accruing vendor rebates as a contra-COGS reduction instead of income, and tracking consignment inventory by location and ownership — plus a monthly close checklist and journal entries.

Mike Thrift

bookkeepinginventorycost-of-goods-sold
18 min read

Roofing Contractor Bookkeeping: The WIP Schedule That Tells You Whether Your Bank Balance Is Lying

A roofing WIP schedule ties revenue to work actually completed rather than to when you invoiced — percent complete equals costs to date divided by total estimated costs, and earned revenue equals percent complete times revised contract price. This guide walks a $192,000 TPO re-roof through the math, explains over- versus under-billing, retainage receivable and warranty accruals, and covers when Section 460 forces percentage-of-completion for tax (roughly $31 million in average gross receipts for 2026, or contracts running past two years).

Mike Thrift

constructionjob-costingrevenue-recognition
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