Accounting cash method is the practice of recording income and expenses at the same time that they are received and paid-out, respectively. This method offers an immediate financial picture of a business, simplifying the accounting process by avoiding the need to track payments that may not occur until later in the year. As such, this method requires precise record keeping and a clear understanding of cash flows so as to ensure accuracy in reporting. By using the cash method of accounting, businesses can gain better insights into their financial health, allowing them to make better decisions for the future.