What is accrual accounting?
Definition of Accrual accounting
Accrual accounting indicates how much cash a Business has and what invoices are owed to them.
Accrual accounting looks further than your immediate cash position. Accrual accounting takes into account the cash that will be flowing to and from the business. Therefore, accrual accounting gives a more accurate view of the financial position of the business.
Some other interesting facts about Accrual accounting:
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Sales and Purchases invoices not paid yet, are tracked;
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A long-term view of the finances of the business
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Some lenders and/or investors often prefer businesses that use accrual accounting
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