Expenses are the costs of doing business to gain revenues, and they are accrued when they are incurred but not paid in the same period. Since the expense still applies to the period it was incurred, ...

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 ...

Learn what every business owner needs to know about financial accounting, accounting software and financial statements.

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 ...

Opinions expressed by Entrepreneur contributors are their own. Should small businesses use cash or accrual accounting? This question gets asked almost as much as “paper or plastic?” and “debit or ...