Although no cash has yet been exchanged, accruals are revenues received or costs incurred that have an impact on a company’s net income on the income statement. Since accruals involve non-cash assets and liabilities, they have an impact on the balance sheet as well. A few examples of accrual accounts are accounts payable, accounts receivable, accumulated tax liabilities, and accrued interest earned or payable.

The tax laws are very complex. Our short blog articles cannot cover in full all the nuances of the rules. Your specific facts may hold various opportunities and possible risks that only trained, experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out on your own. Consider giving this marketplace a try by posting your project and signing up here.

If you are a licensed tax professional and are interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.