Accrual to Cash Converter
Simplifying Financial Reporting for Construction Companies
Article Highlights:
The Accrual to Cash Converter automates cash-basis reporting in Sage Intacct without disrupting accrual-based books.
- Eliminates Manual Adjustments – Reduces reliance on spreadsheets and manual entries, improving accuracy and efficiency.
- Seamlessly Integrates with Sage Intacct – Works within the system to generate user-defined journal entries for accurate financial reporting.
- Designed for Construction Accounting – Supports industry-specific needs, including retainage, and the ability to report on a cash basis for compliance requirements.
Construction companies need financial reporting that balances accuracy and flexibility. Sage Intacct requires accrual-based accounting for Construction subscribers, which aligns with industry best practices. However, many businesses also need cash-basis reports for tax filings, bank reporting, or internal financial analysis.
At Sockeye, we solve these challenges with innovative, real-world solutions. Our latest customization, the Accrual to Cash Converter, lets construction companies generate cash-basis reports in Sage Intacct—without disrupting accrual-based books or relying on manual adjustments.
Closing the Gap Between Accrual and Cash Reporting
Accrual accounting provides a complete view of a company’s financial position, but many businesses still need cash-basis reports. Traditionally, companies relied on manual adjustments and spreadsheets to convert their books, often leading to inefficiencies and errors.
The Accrual to Cash Converter eliminates this extra work. With a few clicks, users can generate accurate, on-demand cash-basis reports directly in Sage Intacct.
How It Works
This tool is built within the Sage Intacct user interface and follows a simple process:
1. Select Subledger
Choose Accounts Payable (AP), Accounts Receivable (AR), or credit card liabilities for conversion.
2. Define the Scope
Select the entity and locations, then set the as of date.
3. Review Open Transactions
The tool pulls unpaid transactions and summarizes the amounts included in the conversion.
4. Generate Journal Entries
At the push of a button, the system creates a user-defined journal entry that adjusts cash-basis reporting while keeping accrual books intact.
5. Run Reports
Refresh financial statements to see the updated cash-basis view instantly.
The tool also accounts for sales tax payable and applicable retainage, ensuring a complete and accurate conversion.
Improving Financial Reporting for Construction Companies
Construction companies must manage job costs, retainage, progress billing, and compliance requirements. They need both accrual and cash-basis reports to maintain financial clarity and meet both internal and external reporting needs.
The Accrual to Cash Converter helps construction firms:
- Eliminate Manual Work – Automates cash-basis conversions and removes spreadsheet-based adjustments.
- Increase Accuracy – Uses real-time queries on system data to calculate and create conversion entries to minimize errors.
- Enhance Reporting Flexibility – Converts data by entity, location, and account type.
- Meet Compliance Needs – Supports tax and banking requirements while maintaining accrual-based financials.
Building the Future of Construction Accounting
The Accrual to Cash Converter launches our Customization Library, a growing collection of solutions designed for construction companies using Sage Intacct. We continue to develop new tools that increase efficiency, improve accuracy, and streamline financial reporting.
Construction firms that need faster, more accurate cash-basis reporting can access this tool through our Foundations Program. Feel free to reach out for a personalized demo from one of our experts.