Accruals
Accruals are a form of accounting practice that can help to provide an more accurate representation of the economic condition of a project programme or organisation at the end of an accounting period or year.
Accruals are amounts that are unaccounted for, either because they are revenues earned or expenses incurred, that have not yet been recorded in the accounts. Recording, or estimating accruals enables an organisation to keep records of revenue and expenses that have not been received or incurred. This is particularly important in the construction industry where the supply chain is complex and extended, and invoices may not be paid for several weeks, or even months.
This differs from the cash method of accounting which involves the recording of revenue when it is received and the recording of expenses when they are paid. This raises the problem that revenue is not tied to the expenses that contributed to the generating of the revenue, which can make it difficult to identify the profitability of operations.
In the accrual method, income is reported in the year that the expenses that were incurred to generate that income have been paid. Expenses are reported only once goods and services have been delivered or provided.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Repairing historic stone and slate roofs
The need for a code of practice and technical advice note.
UKCW London to tackle sector’s most pressing issues
AI and skills development, ecology and the environment, policy and planning and more.
Managing building safety risks
Across an existing residential portfolio; a client's perspective.
ECA support for Gate Safe’s Safe School Gates Campaign.
Core construction skills explained
Preparing for a career in construction.
Retrofitting for resilience with the Leicester Resilience Hub
Community-serving facilities, enhanced as support and essential services for climate-related disruptions.
Some of the articles relating to water, here to browse. Any missing?
Recognisable Gothic characters, designed to dramatically spout water away from buildings.
A case study and a warning to would-be developers
Creating four dwellings... after half a century of doing this job, why, oh why, is it so difficult?
Reform of the fire engineering profession
Fire Engineers Advisory Panel: Authoritative Statement, reactions and next steps.
Restoration and renewal of the Palace of Westminster
A complex project of cultural significance from full decant to EMI, opportunities and a potential a way forward.
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this.