Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.
Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.
One example of accrued revenue is accrued interest.
On the balance sheet, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.
<p>Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.<br></p><p>Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.<br></p><p>One example of accrued revenue is accrued interest.<br></p><p>On the <a href="https://www.goforma.com/small-business-accounting/what-is-balance-sheet-profit-loss" target="_blank">balance sheet</a>, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.</p>
Our small business accounting guide walks through absolutely everything you need to know if you're considering starting a limited company. From different taxes, limited company advantages/ disadvantages, how to pay yourself, and what your key filing requirements are.
- When to register a Ltd company
- When to register for VAT
- How to take money out of your company
- Dividend tax rates
- Limited company expenses & corporation tax
- Annual accounts and deadlines
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- Registering for VAT
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