This Accrued Liabilities Policy is designed for organizations aiming to enhance their financial reporting accuracy and compliance with accounting standards. By providing structured guidelines for the management of accrued liabilities, this tool empowers businesses to ensure that all expenses are recognized in the appropriate accounting period, thus aligning expenses with related revenues. This approach facilitates better financial management and supports adherence to generally accepted accounting principles (GAAP), making it an essential asset for organizations focused on financial integrity.

Within this tool, six sample policies are included, each addressing aspects of accrued liabilities. Sample 1 focuses on defining accrued liabilities and establishing responsibilities for their management, while Sample 2 emphasizes the consistent recording of known or estimated future expenditures across all units of the company. Sample 3 offers guidelines for proper accounting practices related to accrued liabilities, ensuring that expenses are allocated correctly. Sample 4 provides insights into the timing of recording payables and accrued liabilities, highlighting critical factors to consider. Sample 5 outlines the necessary procedures for capturing all incurred expenses accurately, and Sample 6 reinforces the importance of timely and precise accrual processes to meet management objectives and GAAP compliance. Together, these samples create a robust framework for organizations to effectively manage their accrued liabilities.

Sample procedures include:

• Services must be recorded and charged as expenses or capitalized, as appropriate, as the services are performed.
• The evaluation of accounting for accrued liabilities is the responsibility of the office of the VP-corporate controller.
• Payroll taxes withheld must be recorded at the time of the related payroll.