Accrual vs. Cash Reporting is a critical aspect of financial reporting for businesses of all sizes. Accrual accounting is the practice of recording revenues and expenses when they are incurred, not when cash is paid or received. This type of accounting allows companies to assess their long-term financial performance. On the other hand, Cash reporting records revenues and expenses only when cash is paid or received, making it simpler to track actual disbursements and receipts. Both are important but serve different objectives, allowing businesses to gain deeper insights into their financial performance and make informed decisions on the best course forward.