The Pros and Cons of Accrual Accounting
If you run a business in Burlington, WI, you know how important it is to keep tabs on your company’s finances. Your business could offer the best products or services in the country, but if you’re not making any money, then your entrepreneurial dream likely won’t last very long. Hiring a certified accounting service like HHA Accounting is one of the best ways to make sense of your company’s dollars, and accrual accounting is one of our specialties! Keep reading to learn more about the benefits and drawbacks of accrual accounting in Wisconsin, then contact us to get a quote!
What Is Accrual Accounting?
You should first be aware of what accrual accounting is, and how it differs from cash- or tax-based accounting. Unlike those other methods, in which revenue and expenses are recorded when money actually changes hands, accrual accounting records transactions immediately when they occur.
Pros of Accrual Accounting
By recording transactions when they occur, rather than when cash is tangibly exchanged, accrual accounting gives your business a more comprehensive picture of your company’s financial status. You’ll be able to more accurately assess your income and outflow, while also creating more data-driven financial strategies in the future.
Cons of Accrual Accounting
The main downside of accrual accounting in Burlington, WI is that it can be difficult to implement and execute on your own. There are several procedures you must follow to make sure you’re in compliance with regulatory laws, and these can be complicated. That’s why it’s recommended to hire a certified public accountant like HHA Accounting, who can make sure your business is benefitting from accrual accounting.
How HHA Accounting Can Help
As a business owner, you have enough things to manage besides your finances. Employee time sheets, customer interactions, and more take up your day-to-day, so why not leave your company’s finances to us? With over 35 years of experience in professional accounting, we can power your business with accrual accounting, bookkeeping services, tax preparation services, and more!
Accrual accounting is just one of the many ways HHA Accounting can streamline your business operations. To get started with a free consultation, contact us today!