Accrual to Cash Conversion

This template should be used for a company that keeps its financial books on the accrual basis, but is eligible for and does report on the cash basis for tax return purposes. This template is not intended to compute the section 481A adjustment for a change in accounting method.

Entering Information

All of the information needed to produce the calculations is entered on the Input worksheet in the Input table. The yellow highlighted cells are calculated fields, and no data should be entered in these cells.  Gray cells are not calculated fields, but data should not be entered in these cells.
Additional lines can be inserted by clicking on the * at the bottom of the table.

Enter the following information:

Accounts/Adjustments:
  • Accounts receivable
  • Allowance for bad debts
  • Accounts payable
  • Wages payable
  • Other payables (list)
  • Payroll taxes payable (employer)