Accrual Accounting
Accrual accounting can seem like a complicated topic to many people. But we believe accrual accounting is something that should be given serious consideration. Taking it seriously will give you a better understanding of the financials of your business, helping you navigate your business financially for the long term.
What is accrual accounting? Read on for answers, and, if you are in or near Burlington, WI, contact HHA Accounting for personalized public accounting you can rely on.
What Is Accrual Accounting?
In accrual accounting, revenues and expenses are matched, recognized, and recorded when they occur. This differs from traditional cash-basis or tax-basis accounting, where revenues and expenses are only matched, recognized, and recorded when money actually changes hands.
The goal of accrual accounting is to give a more accurate picture of a company's financial health by matching revenue and expenses as they are earned or incurred. This can be especially helpful for businesses with a lot of seasonal fluctuations, as accrual accounting will more accurately reflect the company's true performance over time.
Key Facts: Accrual accounting means we match revenues and expenses to each other, recognize, and record these transactions when they occur in your operations, as opposed to the typical cash or tax basis accounting where these transactions are not matched, recognized, or recorded until cash is received or paid out.
Why Use Accrual Accounting?
There are a few key reasons to use accrual accounting:
To accurately reflect a company's financial health
To better understand seasonal fluctuations
To ensure compliance with government regulations
If you're looking for certified public accountants in Burlington, WI who specialize in accrual accounting, contact HHA Accounting. We'll be happy to help you get accrual accounting set up for your business and answer any questions you have.
Interesting Facts About Accrual Accounting
Did you know that accrual accounting is the standard for financial reporting in the United States? That's because it provides a more accurate picture of a company's overall financial health.
In addition, accrual accounting is used by businesses all over the world to help them make sound financial decisions.
About HHA Accounting of Burlington, WI
HHA Accounting is a full-service certified public accounting firm located in historic downtown Burlington, Wisconsin. We offer a wide range of services, including accrual accounting, financial statement preparation, bookkeeping, and tax planning and preparation. We're proud to be one of the only firms in the area that specializes in accrual accounting for businesses of all sizes.