Business Pitch Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Core

Accrual accounting

Also called: accrual basis

ELI5

Accounting that recognises economic events when earned or incurred rather than only when cash moves.

Used in conversation

“Finance needs to reconcile accrual accounting before the numbers are released.”

Pitch context

You will see “Accrual accounting” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 4

Direct term-level sources and supporting source families.