Year-End Close Lab | Cash vs. Accrual

Close adjustment

Recognition decision

Scenario 1

Source cash records Reference data · expand as needed

These amounts drive the cash-basis comparison. Lock values

Counter sales collected Storefront repair paid Business permit paid Packaging supplies consumed and paid Annual service subscriptions collected Annual store lease paid Payroll paid through prior payday Two-year insurance policy paid Marketing paid Operating supplies purchased Utilities paid through November

Live reconciliation

Cash Basis vs. Accrual Basis

Current Year

Operating item	Cash basis	Accrual basis
Revenue
Counter sales		—
Service subscriptions		—
Operating expenses
Storefront repair		—
Business permit		—
Packaging supplies consumed		—
Store lease		—
Payroll		—
Insurance		—
Marketing		—
Operating supplies used		—
Utilities		—
Depreciation	—	—
Operating income		—

Financial Reporting & Analysis

Recognition decision

Cash Basis vs. Accrual Basis