When your business uses accrual accounting, expenses are recognized when a product or service is used instead of when it is paid for.. For example, your business may hire a cleaning crew quarterly to ...

Thanks to accrual basis accounting, many expenses appear on the balance sheet before money changes hands. The company records these expenses, called accrued expenses, in the period they occur. They ...

Unpaid salaries are salary liabilities that you have incurred but have not paid. You must record all accrued salaries, employment taxes and related compensation expenses in the same period in which ...