Many accounting teams rely on manual spreadsheets to account for their prepaid and accrued expenses. The accounting seems relatively simple, and accountants have been using Excel to pick up where bigger tools leave off for years. But accounting automation has come a...
Accrual Accounting Articles
How Accountants Can Maintain Accurate Prepaid and Accrual Accounting When Invoices Are Late
Late invoices — they’re a fact of life in accounting. Whether caused by a vendor’s slow processing or misplaced paperwork, these delays can wreak havoc on financial records, especially in prepaid and accrual accounting. When invoices arrive after the expected period,...
Cash vs. Accrual Accounting Explained with Examples and Journal Entries
1. Cash basis accounting Advantages of the cash basis May be best for 2. Accrual basis accounting Advantages of the accrual basis May be best for 3. Cash vs. accrual accounting example4. Summary5. Related articlesChoosing and correctly applying the right accounting...
Prepaid Expenses Guide: Accounting, Examples, Journal Entries, and More Explained
1. What are prepaid expenses? Prepaid expenses vs. accrued expenses 2. Accounting for prepaid expenses Accrual basis vs. cash basis Presentation on the balance sheet When do prepaid expenses hit the income statement? 3. Common examples of prepaid expenses Lease...
Accrued Expenses Explained: Accounting, Examples, Journal Entries, and More
1. What are accrued expenses? 2. Accrued expenses vs. prepaid expenses 3. Accounting for accrued expenses Accrual basis vs. cash basis Accrued expenses vs. accounts payable 4. Financial statement presentation Balance sheet recognition Income statement recognition 5....
Accrual Accounting Explained: Summary, Examples, Journal Entries, Applications, & More
1. What is accrual accounting?2. Key components of accrual accounting Prepaids Accruals 3. Cash basis vs. accrual basis accounting Cash basis accounting Accrual basis accounting 4. Benefits of accrual accounting5. Challenges of accrual accounting6. When should you use...
How To Leverage Contracts for Prepaid and Accrual Accounting
Accounting teams frequently struggle with the efficient management of prepaids and accruals due to the complexities involved in tracking expenses across multiple accounting periods and ensuring precise financial reporting. Traditional methods for managing prepaids...
Accrued Rent Accounting under ASC 842 Explained
1. What is accrued rent? Accrued rent vs. deferred rent 2. Accounting for accrued rent with journal entries Accounting for accrued rent under ASC 840 Accounting for accrued rent and deferred rent under ASC 842 3. SummaryWhat is accrued rent? Accrued rent is a...
Streamline Prepaid and Accrual Accounting with Catch-up Entries
Accountants act as an organization’s financial record keepers, meticulously documenting and reporting past financial transactions. But, challenges arise when documents like invoices or contracts arrive after a financial period closes, forcing accountants to make...
Are You Underestimating Your Organization’s Prepaids?
A growing number of organizations are significantly underestimating their prepaid expenses, potentially causing inaccuracies in financial reporting that can lead to suboptimal strategic decisions and compliance issues. To ensure your organization isn’t subject to...
Prepaid Rent and Other Rent Accounting for ASC 842 Explained (Base, Accrued, Contingent, and Deferred)
1. Rent explained 2. Accounting for rent under the new lease accounting standards 3. Base rent Accounting for base rent with journal entries 4. Prepaid rent Is prepaid rent an asset? Accounting for prepaid rent with journal entries 5. Accrued rent Accounting for...