Accounting Method Accrual and Cash are two different types of accounting methods. With the Accrual method, you record transactions as they occur, regardless of when payment was exchanged. This means that revenue and expenses are reported in the period when they were incurred, whether or not you have received the money. On the other hand, the Cash method of accounting focuses on recording transactions only when a payment has been exchanged. This means that revenue is recorded only after payment has been received, and expenditures only after payment has been made. It’s important to consider which accounting method is best for your business and its specific needs.