What is the difference between accrual and cash basis in Odoo?

In Odoo Accounting software, accrual basis recognizes revenue when you invoice customers and expenses when you receive bills, regardless of when money moves. Cash basis only records transactions when payments are received or made. Odoo Accounting features let you configure your preferred method, and for businesses requiring both, Odoo can generate cash basis reports from accrual data. With Odoo Accounting GST, tax obligations follow cash basis for small businesses, and Odoo handles this correctly. You can toggle between methods in reporting to see your financial position both ways without changing underlying entries.