The Accrual vs Cash Basis of Accounting

In order to properly implement bookkeeping, companies need to first choose which basis of accounting they will follow.

Companies can choose between two basic accounting methods: the cash basis of accounting or the accrual basis of accounting.

The difference between these types of accounting is based on the timing for when the company actually records a sale (money inflow) or purchase (money outflow) in the books.

Full Accrual: Record transaction when it occurs, even if cash is not received or paid. Prepaid expenses, accrued expenses, accrued payroll, and deferred revenue

Modified Accrual: Accounts payable and receivable, banking & credit card activity, and payroll

Cash Basis: Record transaction only when cash is actually received or paid. Receipts and disbursements, banking & credit card activity, and payroll

Our Services

(Get it off your plate…)

When your operation’s numbers are organized, you benefit from the clarity to make more strategic business decisions. You don't always realize how many ways you have to manage money in your business until you sit down and try to do it all at once.

Sage can take the most tedious and error-prone financial recordkeeping off your plate. We specialize in QuickBooks Online AI integrated accounting software, and all work is completed remotely so that your finances are maintained seamlessly and continuously behind the scenes.

Our comprehensive service package includes:

Categorize Expenses & Income
Pay bills (Accounts Payable)
Invoice (Accounts Receivable)
Interface/liaison with payroll vendor throughout the year
Prepare Monthly Financial Statements (Profit & Loss comparisons; Outstanding Invoices; Balance Sheet, etc.)
Year-end Reporting
Serve as liaison between client & accountant throughout the year
Download & categorize monthly transactions into QuickBooks Online
Email monthly financial statements to client
Monthly correspondence regarding financial status

Bookkeeping

Our service packages are full-service and comprehensive — we do it all — from setup, to cleanup, to ongoing monthly bookkeeping for individuals and businesses.

Our clients have used words like "tedious" and "arduous" and “time-consuming” to describe the repetitive financial accounting tasks such as bank reconciliation.

We can reconcile as many bank accounts as you choose to work with.

We will categorize each one of your transactions and make sure that all of your money is accounted for.

Let us do those tasks for you so you can focus on your business.

General Housekeeping

Okay, we're not going to dust your knick-knacks or vacuum your floors — we will, however, get your books squared away and cleaned up so that your accountant won’t yell at you when you come in with a box full of receipts each quarter or at the end of the year…

Financial Statements

We provide you with a Balance Sheet, Income Statement (Profit and Loss), as well as a Statement of Cash Flows on a monthly basis.

These reports are great by themselves, but sometimes they just get filed away on your computer — we want to make sure that the information is useful to your business and is helping you get to where you want to go.

Budgeting & Benchmarking

It can sometimes take another trained eye to look at reports and see where a business can improve its financial standing.

Budgeting is an essential planning tool that can be hard to keep up with.

Benchmarking is comparing your business results to a standardized performance goal or number — not just "apples to apples" but "Fuji apples to Fuji apples" — so you can gauge whether you're on the right track.

We can help you with both.