Accrued Expenses

Accrued expenses are costs that have been incurred but not yet paid. They ensure expenses are matched with the correct period.

- Used in day-to-day bookkeeping and journal entries to record transactions correctly.
- Used when preparing trial balances and reconciling accounts.

- Example: Accountants use **Accrued Expenses** when recording transactions and preparing the trial balance.

- Why it matters: Ensures accurate records, supports reliable reporting, and reduces posting and reconciliation errors.