Accrual Method is a method of accounting that records revenue when it’s earned, regardless of when the money is actually received. This method of accounting helps businesses to better measure their financial performance while aligning revenues and expenses in the same period. The Accrual Method focuses on the timing of transactions, recognizing that many economic events have already occurred but not yet been accounted for. By tracking when transactions should be documented, business owners are able to accurately estimate their taxes and forecast future cash flows. In short, the Accrual Method allows businesses to plan more effectively by taking into account all of the economic activities that occur over a period of time.