Accruals and Prepayments

Introduction

How to spread the value of income and expenses across several months to improve your cash flow and get a realistic picture of your profits. Spreading the cost like this is known as making a prepayment or an accrual. Using schedules, dimensions and powerful analytics, the Accruals and Prepayments process can be improved.

Typical Problems

The accruals and Prepayment process is a regular, manual, and time-consuming process for the finance team.

The inability to link a journal to a specific invoice means that if you wanted to see how much had been accrued or prepaid against that invoice, you would have to manually calculate this.

Reporting can also be another manual process, with no link between the journals and invoices, which makes preparing reports difficult.

Solutions

Automate postings of Accruals and Prepayments with cloud accounting, taking away an incredibly manual process, knowing that journals will always be posted at the same point of a month.

Cloud accounting allows you to link the journals and invoice together, to give you traceability and a full audit trail of the invoice linking to the journal.

Dimensions will allow you to add additional detail to accrued and prepaid transactions, allowing you to split the detail using automation and allow you to report in detail with scheduled reporting.

Benefits/ROI

With the power of cloud automation, scheduled journals will post automatically, giving you the reassurance that each month, journals will be posted on time, allowing you to spend more time on other, more beneficial tasks, removing the need for manual postings.

The link between the invoice and the journal will give you improved traceability, allowing you to see immediately, how many of the postings are left. You can combine this with scheduled reports, allowing you to report on dimensional information in detail, automating more detail than you have had, with the power of cloud accounting.