Article
Accrual-to-cash converter
Simplifying financial reporting for construction companies
March 7, 2025
Loading...
Article
March 7, 2025
The accrual-to-cash converter automates cash-basis reporting in Sage Intacct without disrupting accrual-based books.
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 Baker Tilly, 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 for accrual-to-cash conversions.
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.
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.
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:
Yes. Baker Tilly offers an Accrual-to-Cash Converter designed specifically to help construction companies streamline this process.
Automation is possible with the right tools. Baker Tilly’s converter simplifies and automates key aspects of the conversion, reducing manual effort and errors.
Using a purpose-built tool like Baker Tilly’s converter is the most efficient and accurate method, especially for companies with complex job costing and revenue recognition needs.
Yes. Baker Tilly’s online Accrual-to-Cash Converter is one such solution tailored for construction finance professionals.
The transition involves adjusting revenue and expense recognition, aligning with tax reporting requirements and often using tools to simplify the conversion. Expert guidance is recommended.
Use tools that integrate job costing logic, like Baker Tilly’s converter, which accounts for construction-specific nuances such as retainage, progress billing and WIP.
Manual conversion can lead to:
Reasons include:
Cash basis accounting reflects actual cash inflows and outflows, which can simplify reporting but may obscure long-term profitability and liabilities.
Switching may defer income recognition and accelerate expense deductions, but it must align with IRS rules and may require formal approval.
Yes. Cash basis accounting provides a clearer picture of available cash, helping finance leaders make more informed operational decisions.
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. For more information, request a personalized demo from one of our specialists.
Yes. Baker Tilly offers an Accrual-to-Cash Converter designed specifically to help construction companies streamline this process.
Automation is possible with the right tools. Baker Tilly’s converter simplifies and automates key aspects of the conversion, reducing manual effort and errors.