Accrual-to-Cash Excel Spreadsheet Resource | AccountingWEB

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.

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