Accrual basis accounting records is a method of accounting where transactions are recorded when they occur and not when payment is received or made. This means that all financial transactions, like sales and expenses, are recorded as soon as they happen, rather than waiting for the money to physically change hands. For example, if you buy goods on credit then these will be recorded as an expense immediately, even though you won’t actually have paid for them yet. This provides a more accurate picture of your financial performance over any given period of time.