Accrual Basis Definition

Accrual basis is a method of accounting in which income is reported as earned even if it has not been physically received.

Accrual Basis Extended Definition

Under the accrual basis, expenses are recorded when they occur, not when the expense is paid.

Although the accrual basis may be more complicated and time-consuming, business owners may find it easier to keep track of inventory, accounts receivable, and accounts payable.

Accrual basis accounting is also known as accrual accounting.

Related Articles
An Overview of Accrual Accounting | Patriot Software
Cash Basis vs. Accrual: Comparing Accounting Methods | Patriot Software
Accrual Basis Accounting Software | Patriot Software

Last Updated By

Andrew Freiman | Feb 23, 2023