Accrual accounts are a type of accounting system that records incoming and outgoing transactions as they occur, rather than when payment is received or paid out. This method of accounting allows for accurate tracking of revenue and expenses as they happen, allowing businesses to remain on top of their finances. In accrual accounts, revenue is recorded when earned, and expenses are recorded when incurred – not necessarily when they are paid. This helps organizations get an accurate picture of their financial health by seeing what money is due in the future, as well as how much has been earned and spent in the past.