Accounting for a business using the cash method versus the accrual method is an important choice to make when setting up your business’s financial systems. With the cash method, revenue and expenses are only recognized when money is exchanged. This allows businesses to gain better control over their cash flow. On the other hand, with the accrual method, revenue and expenses are recognized when they are incurred regardless of when money actually changes hands. This allows businesses to track all liabilities and assets more accurately. Ultimately, the decision to use either the cash or accrual method depends on the unique needs and goals of your business.