Accrual Accounting and Allocating Marketing Expenses

Allocadia has written an excellent article on accrual accounting and how it relates to marketing expenses.

See: Accrual World: What is Accrual Accounting and Why Does It Matter to Marketers? on January 22, 2015 by Katherine Berry

In the article, Katherine Berry asks and answers some very good questions on this topic:

  • What is accrual accounting?
  • Who uses accrual accounting?
  • How can marketing teams use accrual accounting?

As she explains, when "using accrual accounting, expenses are recorded when an obligation is incurred — regardless of when the cash is paid out." And she has some excellent examples.

Our software, www.Mx3Metrics.com, makes it easy for marketers to allocate expenses like trade shows to the month of the event, as opposed to the time when the expenses is paid which can me many months previously.