Deferral accounting is a system of accounting wherein certain costs are postponed or put off until they become due. This system allows companies to spread out the impact of expenses over multiple years, rather than having them all impact the bottom line at once. At its core, deferral accounting enables businesses to create more accurate financial reporting and forecasting by tracking specific events or activities and their associated costs over multiple periods. It also helps companies to easily measure the impact of their decisions on future results in order to make sound business decisions. In short, deferral accounting gives businesses an invaluable tool for better managing their resources.