{"id":14959,"date":"2026-09-01T08:00:15","date_gmt":"2026-09-01T12:00:15","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=14959"},"modified":"2026-09-02T05:05:32","modified_gmt":"2026-09-02T09:05:32","slug":"accrued-expenses-vs-accounts-payable","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/accrued-expenses-vs-accounts-payable\/","title":{"rendered":"What are\u00a0accrued\u00a0expenses and how do they differ from accounts payable?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat are accrued expenses and how do they differ from accounts payable?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tAccrued expenses and accounts payable are both debts your business owes, but they are managed in distinctly different ways. Read on to learn how each affects your financial reporting and cash flow.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-09-01T08:00:15-04:00\">September 1, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What are\u00a0accrued\u00a0expenses and how do they differ from accounts payable?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/accrued-expenses-vs-accounts-payable\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">When&nbsp;you&#8217;re&nbsp;managing a business, keeping track of your finances can be a bit like juggling.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a lot of concepts and processes to wrap your head around and stay on top of. Some of these can seem&nbsp;very similar&nbsp;but may, in fact, have quite distinctly different meanings and implications.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses and accounts payable are examples of two financial terms that are helpful to understand.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both are liabilities, which means they&nbsp;represent&nbsp;money your business owes. But they play&nbsp;different roles&nbsp;in how your company&nbsp;operates&nbsp;and reports its financial health.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we explain what accrued expenses are, how they differ from accounts payable, and why&nbsp;each of these terms matter&nbsp;to your business&#8217;s financial planning and cash flow.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether&nbsp;you&#8217;re&nbsp;a growing company taking the next step into more complex accounting or just trying to get a clearer picture of how your finance team handles your books, this guide can help.<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>Accrued expenses&nbsp;are costs your business has incurred but not yet paid or been invoiced for\u2014like wages or interest\u2014recorded within each accounting period.&nbsp;<\/li>\n\n\n\n<li>Accounts payable&nbsp;represents&nbsp;money owed to suppliers for goods or services already received, with payment due within a defined period, typically 30 to 90 days.&nbsp;<\/li>\n\n\n\n<li>The key differences&nbsp;lie in timing and recognition. AP is triggered by an invoice, while&nbsp;accrued&nbsp;expenses are recorded regardless of whether an invoice has arrived.&nbsp;<\/li>\n\n\n\n<li>Both affect cash flow differently; AP creates short-term obligations, while&nbsp;accrued&nbsp;expenses can build up over time and strain liquidity if not closely&nbsp;monitored.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-cover\" class=\"wp-block-heading\">Here\u2019s what we cover:<\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-are-accrued-expenses\" data-level=\"2\">What are accrued expenses?<\/a><\/li><li><a href=\"#h-what-is-accounts-payable\" data-level=\"2\">What is accounts payable?<\/a><\/li><li><a href=\"#h-accrued-expenses-vs-accounts-payable\" data-level=\"2\">Accrued expenses vs. accounts payable<\/a><\/li><li><a href=\"#h-other-accounting-terms-commonly-confused-with-accrued-expenses\" data-level=\"2\">Other accounting terms commonly confused with accrued expenses<\/a><\/li><li><a href=\"#h-how-to-record-an-accrued-expense\" data-level=\"2\">How to record an accrued expense<\/a><\/li><li><a href=\"#h-advantages-of-keeping-an-accrued-expense-journal\" data-level=\"2\">Advantages of keeping an accrued expense journal<\/a><\/li><li><a href=\"#h-track-your-liabilities-with-pinpoint-accuracy\" data-level=\"2\">Track your liabilities with pinpoint accuracy<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-frequently-asked-questions-about-accrued-expenses\" data-level=\"2\">Frequently asked questions about accrued expenses<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-are-accrued-expenses\" class=\"wp-block-heading\">What are accrued expenses?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses, also known as&nbsp;accrued&nbsp;liabilities, are expenses your business has already incurred but not yet paid for. They can build up over time and are considered &#8220;current liabilities,&#8221; as&nbsp;you&#8217;d&nbsp;typically need to pay them within a year\u2014but&nbsp;possibly within&nbsp;a much shorter period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These expenses are often linked to ongoing costs your business needs to account for consistently, such as salaries, taxes, and interest on business loans.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Or they might be goods and services that&nbsp;you&#8217;ve&nbsp;received but not yet been invoiced for by the supplier.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, the wages your employees earn this month may not be paid until the 1st of the following month. These wages should be recorded as&nbsp;accrued&nbsp;expenses in the current period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Otherwise, when you get to the end of your&nbsp;financial year, the wages you owe your staff for the last 30 days will be left off your financial statement for those 12 months.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s&nbsp;important that&nbsp;accrued&nbsp;expenses are properly recorded as liabilities in your books as soon as&nbsp;they&#8217;re&nbsp;incurred.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;ll&nbsp;need to track and account for these expenses within each accounting period to get&nbsp;an accurate&nbsp;view of your finances at any given time.<\/p>\n\n\n\n<h2 id=\"h-what-is-accounts-payable\" class=\"wp-block-heading\">What is accounts payable?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable (AP) is also a current liability,&nbsp;representing&nbsp;money your business owes to suppliers or vendors for goods and services received but not yet paid for.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While both <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-asset-or-liability\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable<\/a> and&nbsp;accrued&nbsp;expenses can be short-term debts, AP is due within a defined period specified on an invoice, such as 30, 45, 60, or 90 days.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This allows your company to take possession of goods or services&nbsp;immediately&nbsp;but defer payment for a period defined by your supplier&#8217;s payment terms.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It functions similarly to a line of credit, where your company gets to use the products or services from the supplier without having to pay upfront.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, suppose your business orders raw materials from a supplier, who issues an invoice with payment terms of 30 days.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The amount owed will be recorded as accounts payable in your books. Your business can use the materials&nbsp;immediately, but you have up to 30 days to pay for them.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The advantage here is that your business can generate revenue from the goods before paying for them, which helps with cash flow management.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might also be able to negotiate longer payment terms with suppliers for better liquidity. This can be particularly useful if&nbsp;you&#8217;re&nbsp;waiting for customers to pay for products or services.<\/p>\n\n\n\n<h2 id=\"h-accrued-expenses-vs-accounts-payable\" class=\"wp-block-heading\">Accrued expenses vs. accounts payable<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at&nbsp;accrued&nbsp;liabilities vs accounts payable, the key differences lie in how they are recognized, their timing, and their impact on your business&#8217;s cash flow.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s&nbsp;break this down in more detail.<\/p>\n\n\n\n<h3 id=\"h-balance-sheet-recognition-timing\" class=\"wp-block-heading\">Balance sheet recognition\/timing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The timing of recognition is one of the primary differences between&nbsp;accrued&nbsp;expenses and accounts payable.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accounts payable<\/strong>&nbsp;is recognized when you receive the invoice for goods, services, or materials that are&nbsp;purchased&nbsp;on credit. For example, if you buy inventory on credit,&nbsp;you&#8217;d&nbsp;record it in accounts payable once you receive the invoice from your supplier. The expense&nbsp;isn&#8217;t&nbsp;paid yet but&nbsp;it&#8217;s&nbsp;due at some point soon, typically within 30 to 90 days.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accrued expenses&nbsp;<\/strong>are recorded by the end of an accounting period, regardless of when the actual invoice is received. So,&nbsp;you&#8217;re&nbsp;accounting for costs such as employee wages, utilities, and interest that have been incurred during the accounting period but&nbsp;won&#8217;t&nbsp;be paid until a later date. This is often done to match expenses with the revenues they helped generate in the same period, ensuring your financial statements are&nbsp;accurate&nbsp;and reflect true profitability.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let&#8217;s&nbsp;look at an example for each:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accounts payable:<\/strong>&nbsp;if you receive a shipment of materials from a vendor with a 30-day payment term, you record the expense in accounts payable once you get the invoice, even though you&nbsp;haven&#8217;t&nbsp;paid it yet. The liability&nbsp;remains&nbsp;until the payment is made.&nbsp;<\/li>\n\n\n\n<li><strong>Accrued expense:&nbsp;<\/strong>this could be any utilities, goods, or services your business has received or used in a month but&nbsp;hasn&#8217;t&nbsp;been billed for yet. It could also be&nbsp;accrued&nbsp;interest on loans where the payment&nbsp;isn&#8217;t&nbsp;due yet. These types of costs accumulate during the accounting period, meaning you need to recognize them even though the actual payment&nbsp;won&#8217;t&nbsp;happen until later.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"h-cash-flow-impact\" class=\"wp-block-heading\">Cash flow impact<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Both&nbsp;accrued&nbsp;expenses and accounts payable have implications on your cash flow, but they&nbsp;impact&nbsp;it differently.<\/p>\n\n\n\n<h4 id=\"h-accounts-payable\" class=\"wp-block-heading\">Accounts payable<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">This is typically a short-term obligation. The payments are due within a relatively&nbsp;short time&nbsp;frame, usually between <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/net-30-payment-terms\/\" target=\"_blank\" rel=\"noreferrer noopener\">30 and 90 days<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since accounts payable&nbsp;represents&nbsp;the amount owed to suppliers for goods or services already received, it directly&nbsp;impacts&nbsp;your short-term cash flow.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your business will need to make sure&nbsp;there&#8217;s&nbsp;enough cash to settle accounts payable when they become due.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, AP debt does provide some breathing room, allowing you to use the purchased goods to generate revenue before the payment is due.<\/p>\n\n\n\n<h4 id=\"h-accrued-expenses\" class=\"wp-block-heading\">Accrued expenses<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">They typically&nbsp;represent&nbsp;costs that accumulate over a longer period and need to be paid once the accounting period ends.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The challenge with&nbsp;accrued&nbsp;expenses is that they can sometimes build up, especially if they&nbsp;aren&#8217;t&nbsp;closely&nbsp;monitored.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Say your business&nbsp;accrues&nbsp;a significant amount of wages or taxes but&nbsp;doesn&#8217;t&nbsp;have the cash flow to pay them when they come due. This could cause a strain on your liquidity.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key is to ensure&nbsp;you&#8217;re&nbsp;accounting for these expenses as they&nbsp;accrue. That way, you can prepare for the larger lump-sum payments that may arise at the end of the accounting period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In short, while accounts payable has a short-term cash flow impact,\u00a0accrued\u00a0expenses may affect your business\u00a0more long\u00a0term, especially if they accumulate over several periods.<\/p>\n\n\n\n<h2 id=\"h-other-accounting-terms-commonly-confused-with-accrued-expenses\" class=\"wp-block-heading\">Other accounting terms commonly confused with accrued expenses<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses share similarities with several other accounting concepts, which can make them easy to mix up in day-to-day bookkeeping.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding what sets each one apart from the rest will help you record and report your finances accurately.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Term<\/th><th class=\"has-text-align-left\" data-align=\"left\">Balance sheet classification<\/th><th class=\"has-text-align-left\" data-align=\"left\">Key distinguishing factor versus accrued expenses<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Outstanding expenses<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Liability<\/td><td class=\"has-text-align-left\" data-align=\"left\">A known, specific amount that\u2019s due but unpaid; no estimation involved, unlike accrued expenses.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Prepaid expenses<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Asset<\/td><td class=\"has-text-align-left\" data-align=\"left\">Paid in advance for something not yet received; on the opposite timing and balance sheet side from accrued expenses.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Provisions<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Liability<\/td><td class=\"has-text-align-left\" data-align=\"left\">Involves genuine uncertainty about amount or timing; accrued expenses are typically known with reasonable precision.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-how-to-record-an-accrued-expense\" class=\"wp-block-heading\">How to record an accrued expense<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Recording an accrual involves two separate journal entries: one to recognize the expense when it\u2019s incurred, and a second to reverse it once the actual invoice or payment comes through.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This two-step\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-a-journal-entry\/\" target=\"_blank\" rel=\"noreferrer noopener\">journal entry<\/a>\u00a0process keeps your books accurate without double-counting the cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The initial journal entry<strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When you recognize an accrued expense, you make a double entry that follows standard bookkeeping principles: you debit the relevant expense account and credit an accrued liabilities account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The debit increases your expenses for the period, reflecting the cost you\u2019ve actually incurred.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The credit increases your liabilities, reflecting the obligation you now owe. Since you typically won\u2019t have an exact invoice amount yet, this entry is often based on a reasonable estimate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, you might calculate one month\u2019s worth of accrued interest on a loan, even though the actual bill won\u2019t arrive until a later date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This entry is dated as of the last day of the accounting period, regardless of when the invoice eventually arrives or the payment is made.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That date is what ensures the expense lands in the correct period on your financial statements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The reversing entry<strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once the next accounting period begins, you reverse the original accrual entry. You are basically flipping the debit and credit to cancel it out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This step matters because when the actual invoice arrives (or payment is made), you\u2019ll record that transaction normally, in full.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without a reversing entry, you\u2019d end up with the cost counted twice: once as an estimate in the prior period, and again as the real transaction in the current one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a>\u00a0solutions can generate reversing entries automatically once the original accrual is flagged, which removes the risk of forgetting this crucial step.<\/p>\n\n\n\n<h2 id=\"h-advantages-of-keeping-an-accrued-expense-journal\" class=\"wp-block-heading\">Advantages of keeping an accrued expense journal<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Maintaining a dedicated accrued expense journal, rather than recording costs only when you\u2019re invoiced or when cash changes hands, brings several practical benefits for your business.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A more accurate financial picture:<\/strong>\u00a0accrued expenses are recorded in the period they\u2019re actually incurred. So, your financial statements reflect your true costs and profitability for that period, rather than an incomplete picture based only on what\u2019s been paid or billed so far.<\/li>\n\n\n\n<li><strong>Better spending visibility:<\/strong>\u00a0an accrued expense journal gives you a running, itemized view of costs building up in the background, like wages, interest, utilities, and other obligations. Nothing slips through unnoticed simply because an invoice hasn\u2019t landed yet.<\/li>\n\n\n\n<li><strong>Improved budgeting and\u00a0<\/strong><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/why-you-should-be-doing-cash-flow-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>cash flow<\/strong><\/a><strong>\u00a0planning:<\/strong>\u00a0because you\u2019re tracking these costs as they accumulate, you can anticipate upcoming lump-sum payments (like a large payroll run or a quarterly interest payment) well before they\u2019re due, rather than being caught off guard.<\/li>\n\n\n\n<li><strong>Stronger negotiating position with suppliers and vendors:<\/strong>\u00a0a clear, ongoing record of what your business owes, and when, means you have full visibility into your obligations rather than reacting to bills as they arrive. This can give you the leverage and confidence to negotiate more favorable payment terms.<\/li>\n\n\n\n<li><strong>More reliable trend analysis and forecasting:<\/strong>\u00a0consistently tracked accrued expenses make it easier to spot patterns in recurring costs over time, which in turn supports more accurate forecasting of future expenses and profits.<\/li>\n\n\n\n<li><strong>Consistency across reporting periods:<\/strong>\u00a0recognizing costs as they\u2019re incurred, rather than when they\u2019re paid, smooths out the lumpiness that cash-based tracking can create. This way, month-over-month or quarter-over-quarter comparisons are more meaningful.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-track-your-liabilities-with-pinpoint-accuracy\" class=\"wp-block-heading\">Track your liabilities with pinpoint accuracy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You must track both&nbsp;accrued&nbsp;and accounts payable expenses closely to avoid cash flow issues and stay prepared for upcoming payments.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The last thing you want is to be caught off guard when a&nbsp;large accrued&nbsp;expense comes&nbsp;due, or&nbsp;find yourself scrambling to pay your suppliers&#8217; invoices on time.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investing in automated <a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts payable software<\/a> can be an effective way to manage all your current liabilities and&nbsp;maintain&nbsp;your business&#8217;s financial health.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These solutions can streamline your financial processes, seamlessly forecast cash flow, track liabilities, and help you stay on top of invoicing.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They can&nbsp;provide&nbsp;a comprehensive view of your financial position, with&nbsp;accurate, real-time data and easy-to-use dashboards.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the right insights,&nbsp;you&#8217;ll&nbsp;be able to make better informed, proactive decisions about your business&#8217;s liquidity and financial planning.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Automating the tracking and forecasting process also reduces the risks of human error and helps keep your books in tip-top shape.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is especially helpful as your business grows, freeing you to focus on other strategic priorities while ensuring your finances are well-managed.<\/p>\n\n\n\n<h2 id=\"h-final-thoughts\" class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the difference between&nbsp;accrued&nbsp;expenses and accounts payable is important for managing your business&#8217;s finances effectively.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While both&nbsp;represent&nbsp;liabilities your company owes, they differ in terms of timing, recognition, and cash flow impact.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts payable typically involves short-term obligations due within a specific period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses, on the other hand, are ongoing costs accumulated over time and need to be recognized within each accounting period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;ll&nbsp;want to make sure&nbsp;you&#8217;re&nbsp;tracking all your liabilities precisely for a smooth cash flow and to avoid financial surprises.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using automated AP tools will help streamline this process, giving you better control over your company&#8217;s liquidity and financial planning.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-frequently-asked-questions-about-accrued-expenses\" class=\"wp-block-heading\">Frequently asked questions about accrued expenses<\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-cf9cfaba\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-how-do-accrued-expenses-affect-cash-flow\" class=\"wp-block-heading\">How do accrued expenses affect cash flow?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Accrued expenses don&#8217;t immediately affect cash flow because no payment has been made yet. Instead, they affect your income statement and balance sheet by recognizing a cost before cash leaves the business. The cash flow impact occurs later, when the liability is settled.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-911d0a90\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-what-are-some-common-mistakes-or-risks-when-recording-accruals\" class=\"wp-block-heading\">What are some common mistakes or risks when recording accruals?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Some of the most common mistakes people make is forgetting to reverse an accrual when payment is received, accidentally accruing an expense that&#8217;s already been paid, and errors related to dating accrual expenses or the actual costs involved.<\/p>\n\n<p class=\"wp-block-paragraph\">If you forget to reverse an accrual once the actual invoice or payment comes through, the same expense will be counted twice, overstating your costs for the period.<\/p>\n\n<p class=\"wp-block-paragraph\">Accidentally accruing an expense for a payment that&#8217;s been paid can happen when communication between accounting and operations teams breaks down.<\/p>\n\n<p class=\"wp-block-paragraph\">Because accruals are often based on estimates rather than final invoice amounts, there&#8217;s also a risk of recording a figure that&#8217;s meaningfully off from the actual cost. If the variance is large enough, this can distort your financial statements.<\/p>\n\n<p class=\"wp-block-paragraph\">Timing errors, such as dating an accrual to the wrong period, undermines the whole purpose of matching expenses to when they were actually incurred.<\/p>\n\n<p class=\"wp-block-paragraph\">As accrual accounting is more complex and requires more journal entries than cash accounting, it carries a higher risk of human error, particularly for businesses that aren&#8217;t using automated accounting software.<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/staying-competitive\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tstaying competitive\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-15065 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-finances tag-small-business business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0771-e1731320383828-1214x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0771-e1731320383828-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0771-e1731320383828-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0771-e1731320383828-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div 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A complete guide\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tA general ledger is the record every other financial report is built from. Here&#8217;s what it is, how it works, and how to read one with confidence, whether you&#8217;re doing the books by hand or with software.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-15058 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-finances tag-cash-flow tag-cfo business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-cash-basis-accounting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0794-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0794-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0794-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0794-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-22T06:14:39-04:00\">September 22, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">15 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is cash basis accounting and how does it work?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-15044 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-ai tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-payment-processing tag-small-business business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-ap-automation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-684x384.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-684x384.jpeg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-768x512.jpeg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-16T05:44:56-04:00\">September 16, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tAP automation: How it works, key benefits, and why your business needs it\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-15025 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-expenses tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/how-to-track-business-expenses\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-15T12:14:22-04:00\">September 15, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to keep track of business expenses\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-15010 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/deposits-in-transit-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits.jpg 1200w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-15T06:42:38-04:00\">September 15, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are deposits in transit and why are they included in a bank reconciliation?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Accrued expenses and accounts payable are both debts your business owes, but they are managed in distinctly different ways. Read on to learn how each affects your financial reporting and cash flow.<\/p>\n","protected":false},"author":1847,"featured_media":8023,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"accrued liabilities vs accounts payable\",\"score\":56},{\"keyword\":\"accrued expenses vs accounts payable\",\"score\":56},{\"keyword\":\"difference between accrued expenses and accounts payable\",\"score\":81}]","_yoast_wpseo_keywordsynonyms":"[\"\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"7","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[162,165,266,271,267,208],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[73,83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["post-14959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-bookkeeping","tag-business-finances","tag-cash-flow","tag-small-business","tag-staying-competitive","business_type-small-business"],"sage_meta":{"region":"en-ca","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528.jpg","imagine_tags":{"35":"accounting software","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=14959"}],"version-history":[{"count":4,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14959\/revisions"}],"predecessor-version":[{"id":14974,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14959\/revisions\/14974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/8023"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=14959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=14959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=14959"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=14959"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=14959"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=14959"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=14959"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=14959"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=14959"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=14959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}