Accrued Liabilities Policy

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Accrual Policies: Allocate Expenses and Revenues to the Correct Accounting Period

This tool contains five sample policies that establish processes where the accrual processes ensure that all expenses related to the month are properly included in the company’s financial statements. The purpose of the monthly accrual process is to allocate expenses to the proper accounting period and match expenses with related revenues.

In these policies, accrued liabilities must be established consistently in each accounting period for the portion of known or estimated future expenditures, which may be properly allocable to current-period activities, but may not be formally payable yet.

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