The main difference between accrual basis accounting and cash basis accounting is in the time the revenue and expenses are recorded. Accrual basis financial statements show the sales for which the company has not been paid yet and cash. basis account is when the money has been received for the revenues or paid out for expense. Cash basis accounts are usually used by small business.
The best way to explain it is to compare it with the monthly bills. We all receive monthly bills which we don’t pay immediately but we forecast the expense.
Companies who use accrual basis accounting have to check more often if they have enough money. For cash basis account it is difficult to track cash. If customers do not pay on time they can be low with money.