Cash Basis to Accrual Accounting: Conversions, Adjustments & Year-End Entries
Convert a small business from cash to accrual books: receivables and deposits, payables and prepaids, inventory and COGS, depreciation, accrued wages and interest, the full P&L bridge, the adjusting entries and a month-by-month chart, on live auto-graded spreadsheets.
The first lesson is free — no account needed.
About this course
A cash to accrual conversion course that moves one fictional bike shop, Juniper Street Bike Co., from cash-basis to accrual-basis books for 2026, for bookkeepers, accounting students and small business owners whose accountant or lender asks for accrual statements. You turn cash receipts into revenue with the change in receivables and customer deposits, convert cash paid into expenses with payables and prepaids, turn supplier payments into purchases and cost of goods sold through inventory, replace equipment purchases with depreciation, accrue unpaid wages and loan interest at year-end, build the bridge from cash-basis to accrual-basis profit, record the adjusting journal entries and chart cash against accrual profit month by month. Textbook methods only, not tax advice. The first lab is free.
Lessons
- Cash Receipts to Accrual Revenue: Receivables & Customer DepositsFree
- Cash Paid to Accrual Expenses: Payables & Prepaids Pro
- Inventory Purchases to Cost of Goods Sold Pro
- Depreciation Instead of Expensing Equipment Purchases Pro
- Accrued Wages & Accrued Interest at Year-End Pro
- Convert the Full Cash P&L to Accrual: the Bridge Table Pro
- Adjusting Journal Entries for the Conversion Pro
- Cash vs Accrual Profit by Month: the Comparison Chart Pro