oboloo Glossary

Accounts Payable Accrual Process

oboloo Glossary

Accounts Payable Accrual Process

Accounts Payable Accrual Process is an accounting practice used to record liabilities that are not yet due. With this process, companies accurately record expenses that have been incurred but not paid for, such as payroll obligations and upcoming invoices. It helps ensure that businesses correctly account for all costs associated with their operations, allowing them to produce accurate financial statements. By closely monitoring their accounts payable accrual processes, companies can gain effective visibility of their current financial standing and plan for the future.