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 ...

There are two main types of business accounting methods: cash and accrual. In general, small-business owners have the option to choose which one to use. Both methods function to keep track of income ...

the accumulation of either revenues or expenses overtime that are impactful to the company’s financial statements, even though cash transaction hasn’t been recorded. The concept of accruals is ...

Marshall Hargrave is a stock analyst and writer with 10+ years of experience covering stocks and markets, as well as analyzing and valuing companies. David Kindness is a Certified Public Accountant ...