Expenses that have been incurred but not yet paid for or recorded in the books of accounts.
Unpaid expenses that a business has incurred but has not yet paid for. These expenses are recorded and recognized in the accounting books, even if the actual payment has not been made. Common examples of accrued expenses include salaries, utilities, interest, and taxes. Accrued expenses are important for small business owners to track as they reflect the true financial obligations of the business, impact cash flow planning, and affect the accuracy of financial statements. By managing accrued expenses effectively, small business owners can ensure timely payments and maintain a clear picture of their financial obligations.