What is accrual-based accounting?

Answer by  Milette (1105)

It is an accounting method that reports earnings and income over the fiscal accounting reporting period. Sales are recorded when it occurs regardless of when the money is actually collected. Accrual-based accounting is an excellent method for improved financial management and accountability. This is the best way to assess whether a business is making a profit or not.

Answer by  silverkatcreationsyahoocom (324)

accural based means sales and such ae recorded as they happen. not when the monies are collected.This works well if you need to keep track of rather your business is viable and works well if you are mid sized business and have no issues collecting on sales owed to you.