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.
1Program, course, and extended classroom availability vary by location. In site-based programs, students will be required to take a substantial amount of coursework online to complete their program.
2Credits and degrees earned from this institution do not automatically qualify the holder to participate in professional licensing exams to practice certain professions. Persons interested in practicing a regulated profession must contact the appropriate state regulatory agency for their field of interest. For instance, typically 150 credit hours or education are required to meet state regulatory agency education requirements for CPA licensure. Coursework may qualify for credit towards the State Board of Accountancy requirements. However, it is the student’s responsibility to contact the state board of accountancy for the jurisdiction in which they are applying to determine whether they have completed the appropriate credit hours and coursework to qualify to take the CPA exam. Employees of DeVry University and its Keller Graduate School of Management are not in a position to determine an individual’s eligibility to take the CPA exam or satisfy licensing.
