By Steve Smith
The information presented here is true and accurate as of the date of publication. DeVry’s programmatic offerings and their accreditations are subject to change. Please refer to the current academic catalog for details.
December 14, 2022
5 min read
Accrual accounting is a term you may have heard but its meaning remains a bit murky. Businesses of all types and sizes need to use different accounting methods to track their finances, get a clear picture of their cash flow, compare their financial performance over multiple accounting periods and determine what taxes are owed. Without being familiar with what this term means, it might be hard to see why it’s so important.
In this article, we’ll provide a detailed answer to the question: What is accrual accounting? We will also discuss how it works, its benefits, some of the different types of accruals and how accrual accounting differs from cash basis accounting.
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