Accrual accounting records income when it is earned and costs when they are incurred. The timing of the cash receipt or payment may be different. Cash accounting instead records amounts when money moves. These methods can therefore show different results for the same period. Source: Xero: Cash and accrual accounting

Agree how bookings enter the accounts

Ask the accountant to document when each type of travel income and cost should be recognised. Include deposits, cancellations and commission in that discussion. This gives the team an agreed policy to apply when booking dates and payment dates differ.

Check the reporting basis

Label reports with their accounting basis and use the same basis for comparisons. For a hypothetical service earned in June and paid in July, accrual accounting records the income in June. Use a separate cash forecast to plan around the July receipt.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.