2/3/2026Accounting Problem Statements
Accrual vs Cash: Why This Is a Reporting Problem, Not a Data Problem
Gaurav Singhal
View LinkedInAccrual vs Cash: Why This Is a Reporting Problem, Not a Data Problem
Finance teams often argue about accrual vs cash as if it is a system choice.
It isn’t.
It is a reporting lens.
Why accrual accounting is non-negotiable
Accrual accounting reflects:
- Revenue recognition
- Legal obligations
- Audit truth
CFOs need accrual views for:
- Financial statements
- Forecasting
- Compliance
Any serious system must store accrual-first data.
Why customers think in cash
Customers care about:
- What they paid
- What remains unpaid
- What will hit the bank
They don’t reconcile accruals.
They reconcile cash reality.
Both views are valid.
They just should not be stored differently.
Where systems go wrong
Some systems:
- Store cash-only data
- Or hard-code accrual logic
Correct systems:
- Store accrual truth
- Apply reporting filters
The same ledger supports both views without contradiction.
For how this fits into customer ledger visibility, see:
👉 The “Where Is My Ledger?” Problem
CFO takeaway
Accrual vs cash is not a schema decision.
It is a reporting responsibility.