accural accounting

Accrual accounting - under matching concept, all relevant expenses and income should be recorded in their appropriate period of time.
You should have a basic idea that if cash accounting is used, the performance of a company can be freely manipulated and cannot reflect the actual performance and situation. Eg. when cash account is used, you can record no expense in first month, but a great amount in next month. But the revenue may be recorded in the first month too. It's so illogic that no cost and expense to generate income.
If the accrual accounting is used, the related cost and expense can be recorded in the first month too (although it may not be settled) to reflect the performance in a true and fair view.
So cash accounting should not be used.

since it is unlikely that a company will use its cash for payment, firms prefer to keep as much as cash flow within the company and get credit for trade which can gain interest as well as keeping the cash flow of its company in a stable condition for any unforeseable risk.