Business

Accrual Accounting Definition: Guide to Accrual Accounting

Written by the MasterClass staff

Last updated: Feb 25, 2022 • 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.