The Encarmo Glossary · living reference

Every business term, in plain English.

Accounting, payroll, HR, inventory, and CRM jargon decoded by operators who've actually used these words in context. No textbook language, no paywalls.

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Accrual
ACCOUNTING·Core concept

Accrual accounting vs cash basis — what actually changes

Accrual accounting records revenue when it's earned and expenses when they're incurred — not when cash moves. If you invoice a client in March and they pay in May, accrual books it in March. Cash basis books it in May. One gives you a truer picture of your business health.

Revenue recognitionGAAPFinancial statementsSMB accounting
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