Accrual accounting measures are used to track and report financial income and expenses on a timely basis. This type of accounting records transactions when they happen rather than when payment is made or received. This means that revenues are recognized when they are earned and expenses are recognized when incurred. It also allows businesses to better understand their actual costs, letting them see the true value of their money each period. With an accrual measure in place, businesses have better visibility into their finances and can make more informed decisions.