Big Announcement: Introducing Accrual Accounting Sync
Big things are happening at Abacus and we wanted you to be the first to know! Abacus customers now have the power to choose a cash or accrual accounting method for their sync.
Our real time expense reporting software does a lot of awesome things, namely giving finance teams a real time view of their cash flow and speeding up the submission and reimbursement process. Now it has another cool trick – admins can choose to sync employee expenses from Abacus into QuickBooks Online (other systems following soon!) on an accrual basis. Simply toggle between cash or accrual accounting method, and Abacus will automate the bookkeeping for you.
How are we able to do this?
Since we don’t make employees bundle expenses together into expense reports (yuck!), we are able to sync each expense to your accounting software on either the date the expense was incurred or the date it was paid. Many of our customers submit their expenses in real time to take advantage of all of our features, but for those cases where employees delay submitting an expense for a month or two, it can now be recorded in your books the way that makes sense for your business.
We couldn’t be more excited about bringing this new feature to our customers! Employee expenses are often the largest cost center in a company, and collecting data around expenses requires a level of coordination that’s taxing to the business. Accrual accounting capabilities help us eliminate some of those challenges and put finance teams in a better position to understand their profitability and therefore make more informed future spending decisions.
The nitty gritty: how does Abacus accounting sync work with QuickBooks Online?
Sync transactions according to the date an expense was incurred.
With our accrual sync, Abacus will create a new purchase transaction for each expense against an Abacus Clearing account. This will enable us to sync each expense based on the date the expense was incurred, rather than the date the reimbursement was sent.
When the expense is reimbursed, we will create a transfer in the amount of the associated debit from your bank register to the Abacus Clearing account so everything zero’s out. An additional benefit of this method is that expenses will be tracked by vendor.
Sync transactions according to the date expense reimbursements are paid out.
For reimbursable expenses, Abacus will create a bill and corresponding bill payment each time we debit your bank account for a reimbursement (max once a day for the sum of all expenses approved that day). Each expense in that batch will be represented as a line item in that bill. The bill payment amount will match the debit you see on your bank account for easy reconciliation.
We believe that by replacing the traditional expense report with a real time employee expense system, we are able to provide our customers with advantages that other platforms can’t offer. Our on-demand insights and in depth analytics, as well as the addition of accrual accounting, are helping finance teams modernize and add another level of value to the organization. We’re excited to continue bringing new and exciting features to our customers as we continue to improve employee expense management.