Accrual Accounting Definition: Guide to Accrual Accounting

Written by MasterClass

Last updated: Jul 21, 2021 • 3 min read

Accrual accounting is a method of business accounting that allows an entity to track revenue and expenses as they occur, not when cash changes hands. It can give an accurate measure of a company’s profitability and current assets, provided that all parties involved in these business transactions make timely payments.