Accrual Basis Revenue is the sum of all revenue for which invoices have been issued, even if the cash has not yet been received. When companies use an accrual basis of accounting, the revenue from sales is reported when a company’s services are performed or products are delivered to customers. This is regardless of when the customer actually pays for the transaction. Defining revenues in this manner provides a more accurate representation of a company’s financial performance and cash flows. Having an understanding of how these terms apply and apply in different scenarios can be fraught with complexity, but necessary for businesses to succeed.