2. Making year-end accrual adjustments

If you are on the accrual basis of accounting, you need to make sure that all income and expenses that have been incurred for the period are recorded. In the online chapter, Chapter 13, Small Business Bookkeeping 101, available online using this link: https://packt.link/supplementary-content-9781836649977 we discuss what accrual basis accounting versus cash basis account is. Some examples of accruals that may be required are inventory purchases that you have received the product for but not the bill and employee wages. Be sure to consult with your accountant for the proper recording of these transactions. We will discuss journal entries in more detail later in this chapter.

Record all accounts receivable for the end of the period, which means invoicing all customers for work performed. This will ensure that all income is recorded and shows up on your profit and loss (income statement) report. Similarly, be sure to record all accounts...