What is the name of the accounting method that records revenue when cash is received?

The accounting method that records revenue when cash is received is cash basis accounting.

Under this method, a business recognizes income when money actually arrives, rather than when it invoices a customer or completes a sale. Expenses are generally recorded when they are paid. This makes the method relatively easy to understand and useful for many small businesses, freelancers, and individuals.

Cash basis accounting differs from accrual basis accounting, which records revenue when it is earned and expenses when they are incurred, even if payment happens later. For example, an accrual-basis company can record a sale as accounts receivable before collecting cash; a cash-basis company waits for collection.

The method can give a distorted picture when large payments are delayed or made well before the related work occurs. Tax authorities may also impose eligibility rules, and some larger companies must use accrual accounting for financial reporting.