Reviewed by David Kindness Fact checked by Vikki Velasquez An accrual has occurred but has not yet been paid for. This can ...

With the accrual method, income and expenses are recorded as they occur, regardless of whether or not cash has actually changed hands. An excellent example is a sale on credit. The sale is entered ...

For example, you would report expenses that were paid in 2022 when filing your 2022 tax return. On the other hand, if you use the accrual method of accounting, you'll deduct expenses when you ...