I'm curious - do dear readers have use cases that call for using an accrual basis, that do NOT fall into these categories:
?
I've been using accrual basis for all my transactions since I started accounting. I see no point in not using accrual accounting. I don't think it's particularly complicated.
Even recording expenses bought on a credit card are, in a sense, "accrual basis" rather than "cash basis", since you've not actually paid out any cash. The same goes for pretty much anything that's a "liability payable" or an "accounts receivable".
So, accrual accounting helps me keep track of money I owe to friends who paid for dinners, etc., within my journals rather than in a separate spreadsheet. The same goes money owed to me.
It's useful to record utility bills, tax claims, etc., when I receive them rather than just when I pay it, as it paints an accurate picture of money I have (in the sense that it is marked as a liability, and so shows up in a balance sheet). This is especially true for people on tight budgets.
It helps smooth out both expenses and income (if you're used to receiving or giving credit).
The downside, of course, is that you may owe tax on money that's not yet hit your bank account.
Because (strict) cash basis just doesn't work. You will never not use accrual basis. Try using cash basis when buying a car. You'll only see cash -$30,000 the day you buy a car, and when you sell that car, you'll earn a lot of money in a single day.
I'll assume, then, that what OP was talking about was about using payable, receivable, or accrued expenses/revenue, depreciation, etc. But even in that case, without using accrual basis, costs/income will fluctuate and the beautiful reports hledger generates will be less useful. Paid for a 12-month subscription because it was 10% cheaper? Guess you really overspent that month! Accrual basis is a must to understand how you are actually doing financially.
Corporate finance mandates all kinds of overengineered accounting procedures that will help you understand how the company is actually doing, such as distributing interests generated/paid to correct assets/liabilities, etc., and for good reason.