Accrual vs Cash Accounting
Accrual vs Cash accounting for contractors. Learn why accrual is better for tracking real project profitability and WIP.
Calculation Formula
Accrual Income = Work Performed (Revenue) - Costs Incurred (Expense) Real Contractor Example
On Dec 31, you finish a $10k job but haven't been paid. In accrual, you have $10k income. In cash, you have $0.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.