What Is an Accrued Expense?

An Accrued Expense is a type of debt that runs on a cycle to pay off the debt. The accrued expense is reported in the period in which it is incurred.

Examples of different types of Accrued expenses could be loans and credit cards. Anything that is debt related and is being paid off in cycles would qualify as an Accrued Expense.

Accrued Expenses are useful for accounting purposes because the expense is already recognized on the books before the payment has been made. A time that an Accrued Expense would come in useful is if a person or entity has used funds for the benefit of the campaign but is awaiting re-payment.

Once you add an Accrued Expense to your database, it will then be reflected in your Balances.