what is accrual accounting 
accrual accounting is a financial accounting method that allows a company to record revenue before receiving payment for goods or services sold and record expenses as they are incurred in other words the revenue earned and expenses incurred are entered into the company s journal regardless of when money exchanges hands accrual accounting is usually compared to cash basis of accounting which records revenue when the goods and services are actually paid for learn more about accrual accounting and how it differs from the other popular accounting method cash accounting investopedia jessica olah