Cash Accounting is a method of recording financial transactions where revenues and expenses are recognized only when cash is actually received or paid. This means that income is recorded when money comes in, and expenses are recorded when money goes out, providing a straightforward view of cash flow. This approach is often used by small businesses and individuals because it is simple and easy to manage. Unlike Accrual Accounting, which records transactions when they are incurred regardless of cash flow, cash accounting gives a clear picture of available cash at any given time.