Accounting is an essential part of any business.

Accrual basis accounting is an accounting method that records transactions at the time they are incurred, regardless of when the money is actually exchanged.

Financial accounting is essential for understanding the financial health of a business.

Accrual basis accounting is an accounting method that records transactions at the time they occur, regardless of the payment or receipt of funds.

Management accounting is essential for making informed financial decisions.

Cash basis accounting is used to record financial transactions at the time when money is received or paid.

Cash basis accounting is a method of recording financial transactions.

The accounting of these two companies are very different.