To differentiate between Cash basis and accrual basis of accounting let us first define the meaning of accrual accounting and cash basis accounting method. The accrual method of accounting is the method where both the revenue and expenses are well-recognized. And the best part about it is we can record when the revenue and expenses occur. But in the case of cash basis accounting refer to the method where all the items aren’t well-documented until cash exchanges occurred. That’s the primary difference between accrual and cash basis accounting.