USA Accrual to Cash conversion at EOY


Joined
May 12, 2020
Messages
2
Reaction score
0
Country
United States
Hello Everyone,

I have a problem I've been trying to figure out for a week now; i'm sure there is an easy answer but i just can't see it.

Background:
We a small company that keeps financials in the accrual method. But for our tax return, we file on the cash basis.

Problem:
I normally convert the accrual financials to cash basis by reversing out end of year balances in our payables/accruals accounts.
This of course affects net income and what rolls into retained earnings.

Assuming I did this for the year 2018, and now I have to do it for 2019, how do I factor in the cash/accrual adjustments made in 2018 for 2019 so that the retained earnings in my balance sheet properly rolls forward on the cash basis?

I'm sure there is a simple answer but I just can't see it....

Thanks in advance
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,009
Reaction score
274
Country
United States
Retained Earnings on Cash Basis for 2019
Should be
Accrual Basis R/E for 2019 adjusted by 2018 and 2019 accrual to cash income adjustments.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

USA Cash to Accrual Conversion? 1
USA Stuck doing Accrual to cash basis conversion! 1
Cash to Accrual 3
UK Accruals advice 3
Fixed Assets accruals 7
USA Unpaid accrual expenses 1
USA Reclass Revenue Accruals? 1
USA Question on Cash to Accrual 1

Top