Has your growing corporation or SMB made the switch to accrual basis accounting? If so, you may find yourself a bit confused. Accrual based accounting isn’t as easy as logging income when you receive it and expenses when you spend the money. But it does provide several benefits over cash based accounting (the method most businesses use when they start out).
Accrual based accounting:
- Provides more accurate financial forecasting.
- Lets you gauge the ROI of specific projects and initiatives more accurately.
- Is the only method approved in GAAP accounting, and widely used in business bookkeeping when reporting to share holders, seeking VC funding, or applying for business loans.
You can see why, as your business grows, it’s important to switch to this standard at some point. But when?
If you’re moving your business bookkeeping to a professional firm, if it’s gotten too big for you to do yourself or to have an employee in your office who is not a professional bookkeeper do it, then it’s time to make the switch… to both a virtual bookkeeping service and accrual based accounting.
Virtual Business Bookkeeping
At AccountingDepartment.com, we make the transition to accrual based accounting easy for you. In monthly meetings, your financial controller will explain your financial statements and help interpret what the facts and figures really mean.
As your business grows, accurate bookkeeping becomes more and more important. Your full-charge bookkeeper managed by AccountingDepartment.com will keep your records in order as your company continues to grow.
