Accrual-to-Cash Excel Spreadsheet Resource

A question in the AccountingWEB Q&A Forum asked if anyone knew of an existing template such as an Excel worksheet or simplified software program that can be used in workpapers and to teach new team members how to properly and completely convert an accrual trial balance to a cash trial balance.

Our thanks to Mr. Jim Blair, CPA, an AccountingWEB member for responding and making his simple template available to AccountingWEB members.

The attached download is a very simple spreadsheet to convert accrual basis net income to cash basis. Many financial statement preparers simply zero out the ending balance sheet accounts relative to income and expenses in an attempt to arrive at the adjusted net income amount. The beginning balances for these accounts must also be considered.

This spreadsheet may be revised to include additional accounts on an as needed basis. Remember when adjusting for inventories the IRS allows a deduction for inventories that are paid for in the year of adjustment.

You may download this spreadsheet for free to convert accrual basis net income to cash basis.

You may like these other stories...

Earlier this week I presented the Chart Edition of AccountingWEB’s High Impact Excel webinar series. One of the many topics I covered was the Sparklines feature, which was first introduced in Excel 2010. Several...
On January 30, I led a free, one-hour webinar, High Impact Excel: Pivot Table Edition. If you missed the presentation, it’s too late to get CPE credit, but you can watch an on-demand recording. After the webinar, I...
By David Ringstrom, CPA In Part 1 of this series I showed how to use a custom number format to conditionally display decimal places. Although the technique is simple, the downside is it may not work in every situation....

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.