The Cash Accounting Method is an accounting approach that recognizes revenue and expenses only when cash changes hands. This method will not recognize a sale until the customer pays for the goods or services, and won’t record any revenues until then. Under this system, businesses must record expenses when they are paid and not when they are incurred. This type of accounting allows companies to maintain more control over their finances as they can accurately forecast cash levels based on current performance and debts owed. Additionally, it helps businesses stay on top of expenses, taxes, and fees associated with their operations.