The network for creativity
Join 1.25M professional creatives like you
Connect with clients, get discovered, and run your business 100% commission-free
Creatives on Contra have earned over $150M and we are just getting started
Back to feedPost
ACCOUNTING BEHIND THE SOFTWARE | DAY 9
A business completes a $5,000 project in December.
The customer pays in January.
Under accrual accounting:
December
Dr. Accounts Receivable $5,000
Cr. Revenue $5,000
January
Dr. Bank $5,000
Cr. Accounts Receivable $5,000
The cash arrived in January.
But the revenue relates to December.
This is why understanding the difference between cash and accrual accounting matters when preparing and reviewing financial reports in QuickBooks or Xero.
The network for creativity
Join 1.25M professional creatives like you
Connect with clients, get discovered, and run your business 100% commission-free
Creatives on Contra have earned over $150M and we are just getting started
Related posts
Manage your day-to-day accounting and bookkeeping, including recording and reviewing transactions, maintaining ledgers, bank and credit-card reconciliations, accounts payable, accounts receivable, expense management, and month-end closing.
If your books are behind, disorganized, or contain unreconciled transactions, I can help clean and organize the accounts. This includes bank reconciliation, reviewing unusual balances, correcting accounting entries, clearing outstanding items, and preparing accounts for month-end, year-end, VAT, Corporate Tax, or audit requirements.
Also assist with financial analysis, variance analysis, and organizing financial information into clear management reports that help business owners understand their financial position
