noun the act of accumulating or receiving something over time, especially benefits or payments
adjective related to the process of accruing something
In finance, accrual can refer to the interest that accumulates on a loan or investment over time, but is not yet paid or received.
In economics, accrual can refer to the process of accumulating resources or wealth over time, such as through savings or investments.
In accounting, accrual refers to the process of recognizing revenues and expenses as they are earned or incurred, regardless of when cash is exchanged. This helps provide a more accurate picture of a company's financial position.
In taxation, accrual accounting is a method of accounting where income and expenses are recorded as they are earned or incurred, rather than when cash is exchanged.
Accruals are often used in business management to track and manage expenses that have been incurred but not yet paid for, or revenue that has been earned but not yet received.
In accounting, writers may use the concept of accruals when preparing financial statements to ensure that revenues and expenses are recognized in the period they are earned or incurred, regardless of when cash is actually received or paid out.
Psychologists may use accrual accounting in their practices to accurately track and report income and expenses related to their services, even if payments are received or made at a later date.
Business analysts may analyze companies' financial statements, including accruals, to evaluate their financial performance and make recommendations for improvement or investment decisions.
Project managers may consider accruals in project budgeting and forecasting to account for expenses and revenues that have been incurred but not yet paid or received, helping to ensure accurate financial planning and reporting.