Accrual-based accounting is a system of recording financial transactions that enables businesses to measure and report their financial performance over a period of time. In accrual-based accounting, transactions are recorded when they occur — not necessarily when cash changes hands. This method of accounting allows organizations to see how their profits, losses and assets have changed, allowing them to make more informed decisions. With accrual-based accounting, you can gain a better understanding of your company’s financial position, plan for current and future business activities, and comply with accounting regulations. It’s the perfect approach to ensure your business is running smoothly—and making profits!