An accrual is an income or expense that is recorded in the accounts before cash is received or paid.

It follows the accrual basis of accounting, where transactions are recorded when they are earned or incurred, not when money actually changes hands.

Examples:

Salary payable but not yet paid → Accrued expense

Interest earned but not yet received → Accrued income

In simple terms, an accrual means recording income or expense when it happens, even if cash is not yet received or paid.