Cash vs Accrual Accounting is a method used to track and manage business financial performance. The Cash Method requires businesses to recognize income only when it is received in the form of cash, and expenses must be recorded once paid for. The Accrual Method dictates that income must be recognized at the time it is earned and expenses recorded when incurred regardless of when cash is received or disbursed. Both methods serve an important purpose, but the choice of which one to use ultimately depends on the size and complexity of your business as well as the industry you’re in.