#accrual-accounting
Accrual Accounting
Accrual method accounting principles, conversion from cash basis, and revenue recognition timing
AIA Pay Applications, Retainage, and WIP Schedules: How Construction Billing Ties to GAAP Revenue Recognition
AIA G702 and G703 pay applications, schedules of values, retainage, WIP schedules, and over/underbilling reconciliations are what tie construction billing to GAAP revenue recognition under ASC 606. Here is how each piece works, why a $312 line error can delay a $1.4M wire by 41 days, and the patterns that rattle sureties.
ASC 606 for SaaS Startups: The Five-Step Model, Deferred Revenue, and the Mistakes That Sink Audits
ASC 606 requires SaaS companies to recognize revenue as the service is delivered, not when cash is collected. This guide walks through the five-step model, the deferred revenue schedule auditors scrutinize, and the six recurring mistakes that trigger restatements during fundraising diligence.
Form 3115 Demystified: How to Change Your Accounting Method and Unlock Tax Savings
Form 3115 lets U.S. taxpayers change accounting methods and use a Section 481(a) adjustment to recover missed deductions or correct multi-year errors on a single current-year return, without amending prior years.
The Tax Professional's FAQ: Working with Bookkeepers Without the Friction
A practical FAQ for CPAs and tax preparers who inherit a client's books from a third-party bookkeeper—covering opening balance verification, year-end document checklists, 1099 ownership, cash-to-accrual conversions, and the handoff habits that prevent March surprises.
Profitable But Broke: Why Businesses Run Out of Cash
A profitable P&L and an empty bank account are not a contradiction—they are a timing problem. A breakdown of the five silent cash drains (AR, inventory, loan principal, capex, owner draws) and how a 13-week forecast reveals them before they sink the business.
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.
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.