Glossary
Accrual
Definition
An accrual records income or an expense in the period it belongs to, even when the money moves later. It is how the profit of a period shows the work done in that period. At year-end, accruals make sure the year's results are complete.
Example. An accountant's fee of €300 for the year is recorded as an expense of the year in December, even if the invoice comes in January.
Why it matters for your company
Without accruals, a large invoice sent in December and paid in January makes one year look too good and the next too weak. Accruals keep the profit of each period honest, which matters for the annual report and for any dividend you plan.
Where you see it in Sapita
On the year-end checklist, where Sapita asks you to post accruals and prepayments before you close the year.