Accounting Method Cash Accrual is a means of tracking and recording financial transactions for organizations in order to gain an accurate and reliable view of their overall financial health. It involves recording revenue and expenses on an accrual basis, taking into account the timing of the transaction rather than the actual exchange of funds, such as when items are sold or services are rendered but payment has not yet been received. By using this accounting method, businesses can better track their current cash position, anticipate future costs and plan ahead for short-term liquidity needs. This provides valuable insights and can be used to make more informed decisions when it comes to financial planning and budgeting.