Barrie Bookkeepers Inc

What is accrued?

In accounting it is important to show the income and expenses in the periods or months that they apply to. Sometimes a supplier does not issue a bill in time to enter it in the accounting year. When it is known that there will be a bill an entry is made to an account called Accrued. An estimate of the expense is entered to the expense account in the accounting year and since there isn't a bill to enter to accounts payable, it is entered to Accrued.