Accrual Basis is an accounting method where revenues and expenses are recorded when they are earned or incurred, rather than when cash is received or paid. In industries like manufacturing, retail, logistics, and facility management, the accrual basis of accounting ensures accurate financial reporting, better cash flow management, and compliance with regulatory standards. This method provides a realistic view of an organization's financial health by recognizing transactions as they happen, rather than when payments are made.

For businesses managing contract workers, gig employees, and blue-collar workforce, the accrual basis helps in accurate payroll processing, tracking employee benefits, and managing tax liabilities. Organizations use HRMS and payroll management systems to ensure that salaries, bonuses, and accrued leave are correctly recorded and accounted for. A well-structured accrual-based accounting system enhances financial transparency, simplifies audits, and supports better decision-making.