The phrase "accrual system" is correct and usable in written English.
It can be used in contexts related to accounting or financial reporting, specifically when discussing the method of recognizing revenue and expenses when they are incurred, rather than when cash is exchanged.
Example: "The company adopted an accrual system to better match its revenues with the expenses incurred during the same period."
Alternatives: "accrual accounting" or "accrual basis".
The "it" I am talking about is the accrual system of accounting, used in the private sector and enforced by the Securities and Exchange Commission to protect investors in publicly traded companies.
An advantage of the accrual system is that it is great for tracking the health of your business and building historical trends.
The main disadvantage of the accrual system of course, is that you can never really tell how much cash is in your pocket.
Utilising document analysis and interviews with key actors, this paper considers why a functioning accruals system was established in the UK whereas in the RoI the change to accruals accounting was a 'road not taken'.
It is hoped that the accrual accounting system will be adopted only after a phase of parallel running with the old cash-based system, as has been shown in some recent studies on the topic (Provasoli 2006).
Many scholars (Hopwood 1984; Miller 1994; El-Sayed Ebaid 2011, Nicotra et al. 2014) have investigated the existing bond between company efficiency and accrual accounting system.
Financial data pertaining to five local herders were recorded using the accrual accounting system and analyzed for the years 2009 and 2010.
Ever since 1980, many countries have undertaken reform processes based on achieving greater efficiency in the public sector by adopting an accrual accounting system (Hood 1995; Groot and Budding, 2008).
In sharing this perspective, Athukorala and Reid believe that the accrual accounting system can act as a protection against corruption and fraud, especially in developed countries (Athukorala and Reid 2003; Seol et al. 2011).
In an accrual accounting system, you will record expenses in your ledger when they actually occur, for example, the day you receive your carpentry tools, not necessarily when you pay the bill.
What this means is that firms will only have to pay tax on the amount of money they have actually received, rather than total orders, as under the current accrual-based system.
