A bookkeeping method where you regard income or expenses as occurring
at the time you ship a product, render a service, or receive a purchase. Under
this method, the time when you enter a transaction and the time when you
actually pay or receive cash may be two separate events.
In QuickBooks, an accrual basis report shows income regardless of whether
all your customers have paid your invoices, and expenses regardless of whether you have paid
all your bills. To put all your reports on an accrual basis, in the
Preferences window select Reports and Graphs, and
on the Company Preferences tab click Accrual.