Accrual Accounting

Accrual accounting is an accounting method where revenues and expenses are recorded when they are earned or incurred, rather than when cash is received or paid. This approach provides a more accurate picture of a company’s financial health by matching income with related costs within the same period, which is especially important for understanding profitability and performance over time. Accrual accounting is commonly used by larger businesses or those seeking investment, as it aligns with standard financial reporting practices.

P4i ensures that financials prepared under accrual accounting are clearly understood and accurately reflected in your valuation and deal strategy during M&A transactions.