{"id":29480,"date":"2026-09-02T04:37:41","date_gmt":"2026-09-02T08:37:41","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=29480"},"modified":"2026-09-02T04:37:43","modified_gmt":"2026-09-02T08:37:43","slug":"accrued-expenses-vs-accounts-payable","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/accrued-expenses-vs-accounts-payable\/","title":{"rendered":"What are accrued expenses? A guide for growing businesses"},"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-us\/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? A guide for growing businesses\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 are liabilities representing costs your business has incurred but not yet paid or been invoiced for. Find out how they differ from accounts payable and how proper recording of these expenses can help you keep your financial statements accurate and useful.\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=\"2026-09-02T04:37:41-04:00\">September 2, 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 accrued expenses? A guide for growing businesses\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/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-us\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2025\/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<section class=\"wp-block-sage-article-update\"><div class=\"sage-article-update__inner\"><p>This article was originally published on April 14, 2025 but has been refreshed and re-published with new content in September 2026.<\/p><\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\">When you&#8217;re managing a business, keeping track of your finances can be a bit like juggling. There are a lot of concepts and processes to wrap your head around and stay on top of.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some of these can seem very similar but may, in fact, have quite distinctly different meanings and implications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses are one of those things that are easy to get wrong if you&#8217;re not clear on how and when to record them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this article we&#8217;ll look at what accrued expenses are and how they compare to related accounting terms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We&#8217;ll also explore how to record accrues expenses correctly and why getting this right matters for your business&#8217;s financial planning and cash flow.<\/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 are costs your business has incurred but hasn&#8217;t yet paid or been invoiced for.<\/li>\n\n\n\n<li>Recording accrued expenses in the correct accounting period provides a more accurate picture of your company&#8217;s financial performance and obligations.<\/li>\n\n\n\n<li>Unlike accounts payable, accrued expenses are recognized before an invoice is received and are often based on reasonable estimates.<\/li>\n\n\n\n<li>Accrual accounting requires an adjusting journal entry, followed by a reversing entry once the actual invoice or payment is recorded.<\/li>\n\n\n\n<li>Modern accounting software can automate much of the accrual process, helping reduce errors and improve cash flow planning.<\/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-advantages-of-keeping-an-accrued-expense-journal\" data-level=\"2\">Advantages of keeping an accrued expense journal<\/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-how-do-accrual-entries-play-out-in-ledger-software\" data-level=\"2\">How do accrual entries play out in ledger software?<\/a><\/li><li><a href=\"#h-accounting-terms-commonly-confused-with-accrued-expenses\" data-level=\"2\">Accounting terms commonly confused with accrued expenses<\/a><\/li><li><a href=\"#h-keep-your-liabilities-in-check\" data-level=\"2\">Keep your liabilities in check<\/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 accrued liabilities, are expenses your business has already incurred but not yet paid for.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They can build up over time and are considered \u201c<a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-are-liabilities\/\" target=\"_blank\" rel=\"noreferrer noopener\">current liabilities<\/a>,\u201d as you\u2019d typically need to pay them within a year\u2014possibly within a much shorter period.<\/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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Or they might be for goods and services that you\u2019ve received but not yet been invoiced for by the supplier.<\/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 first of the following month. These wages should be recorded as accrued expenses in the current period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Otherwise, when you get to the end of your financial year, the wages you owe your staff for the last 30 days will be left off your financial statement for those 12 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because accrued expenses aren&#8217;t tied to an invoice, they require deliberate tracking within your accounting process.<\/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> accrued expenses are recorded in the period they&#8217;re actually incurred. So, your financial statements reflect your true costs and profitability for that period, rather than an incomplete picture based only on what&#8217;s been paid or billed so far.<\/li>\n\n\n\n<li><strong>Better spending visibility:<\/strong> an 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&#8217;t landed yet.<\/li>\n\n\n\n<li><strong>Improved budgeting and <\/strong><a href=\"https:\/\/www.sage.com\/en-us\/blog\/why-you-should-be-doing-cash-flow-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>cash flow<\/strong><\/a><strong> planning:<\/strong> because you&#8217;re 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&#8217;re due, rather than being caught off guard.<\/li>\n\n\n\n<li><strong>Stronger negotiating position with suppliers and vendors:<\/strong> a 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> consistently 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> recognizing costs as they&#8217;re incurred, rather than when they&#8217;re 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-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&#8217;s 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 <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-a-journal-entry\/\" target=\"_blank\" rel=\"noreferrer noopener\">journal entry<\/a> process 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&#8217;ve 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&#8217;t 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&#8217;s worth of accrued interest on a loan, even though the actual bill won&#8217;t 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&#8217;ll record that transaction normally, in full.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Without a reversing entry, you&#8217;d 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 <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a> solutions 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-how-do-accrual-entries-play-out-in-ledger-software\" class=\"wp-block-heading\">How do accrual entries play out in ledger software?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, recording an accrued expense typically unfolds in three steps: the initial accrual at period-end, an automatic reversal at the start of the next period, and then the real invoice and payment recorded normally once they arrive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s what that looks like in a typical accounting software workflow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ll use the example of a business that receives a $10,000 utility bill for services used in June, but the invoice doesn&#8217;t actually arrive until July:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Step 1: Accrual (dated June 30):<\/strong> At month-end close, before financial statements are finalized, you enter an adjusting journal entry: debit Utility Expense for $10,000, and credit Accrued Liabilities for $10,000. This ensures your June financials reflect the true cost of utilities used that month, even without an invoice in hand.<\/li>\n\n\n\n<li><strong>Step 2: Reversal (dated July 1):<\/strong> At the start of the new period, most accounting software will automatically post a reversing entry: debit Accrued Liabilities for $10,000, credit Utility Expense for $10,000. This zeroes out the estimate so it doesn&#8217;t linger on the books.<\/li>\n\n\n\n<li><strong>Step 3: Actual invoice and payment (dated sometime in July):<\/strong> When the real $10,000 invoice arrives, you record it as you normally would: debit Utility Expense, credit Accounts Payable. Once you pay it, you debit Accounts Payable and credit Cash.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The net effect: the expense is counted exactly once, even though the paperwork and cash outflow didn&#8217;t happen until July.<\/p>\n\n\n\n<h2 id=\"h-accounting-terms-commonly-confused-with-accrued-expenses\" class=\"wp-block-heading\">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>Term<\/th><th>Balance sheet classification<\/th><th>Key distinguishing factor versus accrued expenses<\/th><\/tr><\/thead><tbody><tr><td><strong>Accounts payable<\/strong><\/td><td>Liability<\/td><td>Recognized once an invoice is received, with a defined payment term (e.g., 30 days); invoice-driven, not period-driven.<\/td><\/tr><tr><td><strong>Outstanding expenses<\/strong><\/td><td>Liability<\/td><td>A known, specific amount that&#8217;s due but unpaid; no estimation involved, unlike accrued expenses.<\/td><\/tr><tr><td><strong>Prepaid expenses<\/strong><\/td><td>Asset<\/td><td>Paid in advance for something not yet received; on the opposite timing and balance sheet side from accrued expenses.<\/td><\/tr><tr><td><strong>Provisions<\/strong><\/td><td>Liability<\/td><td>Involves genuine uncertainty about amount or timing; accrued expenses are typically known with reasonable precision.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Accrued expenses versus accounts payable<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Accounts Payable (AP) and accrued expenses are both current liabilities representing money your business owes. The key difference is timing and how each one comes to be recorded.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accounts payable<\/strong> is recognized once you receive an invoice\u2014say, from a supplier who ships materials with 30-day payment terms. The liability is there in your <a href=\"https:\/\/www.sage.com\/en-us\/accounting-software\/accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">AP software<\/a>, undisputed and quantified, until you pay it off.<\/li>\n\n\n\n<li><strong>Accrued expenses<\/strong>, on the other hand, are recorded at the end of an accounting period regardless of whether an invoice has arrived. Utility usage is a common example: you&#8217;ve consumed the electricity or gas for the month, but the bill won&#8217;t arrive until sometime after your period closes, so you still need to record that estimated cost as an accrued liability.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In short, AP is invoice-driven, while accrued expenses are period-driven.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accrued expenses versus outstanding expenses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Strictly speaking, &#8220;outstanding expenses&#8221; typically refers to costs that were due to be paid within the current period but weren&#8217;t, for whatever reason (a missed payment, a processing delay, and so on).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses, in contrast, are expenses that have been incurred but for which a bill or due date hasn&#8217;t necessarily arrived.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The practical distinction is that an outstanding expense usually implies a specific, known amount that&#8217;s simply unpaid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An accrued expense may still be an estimate, since you&#8217;re recognizing a cost before you&#8217;ve been formally billed for it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accrued expenses versus prepaid expenses<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is the cleanest contrast of the four because prepaid expenses are directly visible on the opposite side of the balance sheet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses are liabilities\u2014money you owe for something you&#8217;ve already received. Prepaid expenses are <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/what-is-an-asset\/\" target=\"_blank\" rel=\"noreferrer noopener\">assets<\/a>\u2014money you&#8217;ve already paid for something you haven&#8217;t received yet.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Think of a business paying 12 months of insurance premiums up front: that payment is recorded as a prepaid expense (an asset) and gradually recognized as an actual expense over the year as the coverage is used.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Accrued expenses versus provisions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Provisions are the trickiest to separate from accrued expenses because both involve recognizing a cost before cash actually changes hands.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The difference comes down to certainty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses are generally known with reasonable precision; you know roughly how much wages, interest, or received-but-unbilled goods will cost, even if the exact invoice hasn&#8217;t arrived.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Provisions, on the other hand, involve genuine uncertainty about either the amount or the timing of a future obligation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A common example is a company setting aside funds for a probable but unresolved lawsuit: it doesn&#8217;t yet know the exact payout or when it will be required, but it still needs to reflect the likely liability on its books.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, accrued expenses are a near-certain cost with an estimate attached, while provisions are a probable cost with real uncertainty attached.<\/p>\n\n\n\n<h2 id=\"h-keep-your-liabilities-in-check\" class=\"wp-block-heading\">Keep your liabilities in check<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Accrued expenses let your business recognize costs in the period they actually happen, not just when cash changes hands or an invoice shows up.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This gives you a clearer, more accurate picture of your finances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accruals are easy to mix up with related terms like accounts payable, outstanding expenses, prepaid expenses, and provisions, so knowing what sets each apart helps you record things correctly and avoid costly missteps.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Getting the mechanics right (recognizing costs at period-end, then reversing those entries once the real transaction lands) takes some discipline.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, <a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a> eliminates most of the manual effort by taking care of entry adjustments and automatic reversals. With the right process in place, you&#8217;ll always know exactly what your business owes.<\/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-ffb15728\">\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-454352ea\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-when-is-reporting-of-accrued-expenses-a-legal-requirement\" class=\"wp-block-heading\">When is reporting of accrued expenses a legal requirement?<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">For most small businesses, using accrual accounting (and therefore recording accrued expenses) isn&#8217;t strictly mandated, and many are free to use the simpler cash basis accounting instead. However, once a company grows past certain thresholds, accrual accounting typically becomes a requirement rather than a choice.<\/p>\n\n<p class=\"wp-block-paragraph\">Publicly traded companies and any business required to follow <a href=\"https:\/\/www.sage.com\/en-us\/blog\/a-guide-to-generally-accepted-accounting-principles-gaap\/\" target=\"_blank\" rel=\"noreferrer noopener\">Generally Accepted Accounting Principles<\/a> (GAAP) must use accrual accounting, which means accrued expenses have to be recognized and reported.<\/p>\n\n<p class=\"wp-block-paragraph\">Businesses above certain revenue thresholds set by tax authorities may also be required to use the accrual method for tax reporting purposes.<\/p>\n\n<p class=\"wp-block-paragraph\">Even where it isn&#8217;t strictly required, lenders, investors, and auditors often expect accrual-based financial statements, since they provide a more accurate picture of a company&#8217;s obligations than cash-based records alone.<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-a8a71a22\">\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 our 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>Get our latest business advice delivered directly to your inbox.<\/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-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/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-us\/blog\/hub\/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-us\/blog\/hub\/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-us\/blog\/hub\/sage-accounting\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tSage accounting solutions\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-us\/blog\/hub\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\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-31288 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-boss-your-business tag-cash-flow tag-growing-a-business tag-small-business tag-staying-competitive business_type-small-business business_type-growing-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=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.jpg\" class=\"card-post__image\" alt=\"A woman on earophones taking notes\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-734165167-1440x810.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\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 class=\"card-post__meta\">\n\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=\"2026-09-24T10:28:33-04:00\">September 24, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/outstanding-checks-bank-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat are outstanding checks in bank reconciliation? How to identify, calculate, and manage them\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\tOutstanding checks can make your bank statement show more cash than your business has already committed. Learn how to identify, calculate, record, and manage them during bank reconciliation.\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-31399 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters tag-accountants tag-accounting-101 tag-boss-your-business tag-business-continuity tag-cash-flow 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-us\/blog\/what-is-an-nsf-check\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-684x384.jpg\" class=\"card-post__image\" alt=\"High performance is key for businesses\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-677893494-1215x810.jpg 1215w\" 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=\"2026-09-16T07:48:37-04:00\">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\">8 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\tNSF check meaning: What is an NSF check?\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-29498 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations category-trends-insights tag-accounting-101 tag-business-intelligence tag-inventory-management tag-productivity tag-staying-competitive tag-supply-chain-management business_type-small-business business_type-growing-business industry-manufacturing industry-nonprofit\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/fifo-vs-lifo\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1441453430-1215x810.jpg 1215w\" 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=\"2026-09-16T07:20:48-04:00\">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\">10 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\tFIFO vs. LIFO: Differences, formulas, and examples\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-30696 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters category-strategy-legal-operations tag-accounting-101 tag-business-intelligence tag-cash-flow tag-cloud-financial-management tag-compliance business_type-small-business business_type-growing-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/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-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-642394299-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-642394299-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-642394299-768x432.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-642394299-1440x810.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=\"2026-09-15T04:56:35-04:00\">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\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-27542 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountants tag-accounting-101 tag-automation tag-small-business business_type-small-business business_type-accountants\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-invoice-processing\/\"\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-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-684x384.jpg 684w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-768x512.jpg 768w, https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-1415809513-1215x810.jpg 1215w\" 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=\"2026-09-14T11:19:56-04:00\">September 14, 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\tInvoice processing: Definition, key steps, and benefits\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 are liabilities representing costs your business has incurred but not yet paid or been invoiced for. Find out how they differ from accounts payable and how proper recording of these expenses can help you keep your financial statements accurate and useful.<\/p>\n","protected":false},"author":1847,"featured_media":20119,"menu_order":0,"comment_status":"open","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 expenses vs accounts payable\",\"score\":56},{\"keyword\":\"accrued liabilities vs accounts payable\",\"score\":56},{\"keyword\":\"difference between accrued expenses and accounts payable\",\"score\":72}]","_yoast_wpseo_keywordsynonyms":"[\"what is an accrued expense\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"43","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":[158,43,44],"tags":[110,299,168,118],"business_type":[40,41],"lilypad":[],"context":[],"industry":[],"persona":[98,96,97],"imagine_tag":[209,233,230],"coauthors":[592],"class_list":["post-29480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accountants","category-money-matters","category-strategy-legal-operations","tag-accounting-101","tag-cash-flow","tag-sage-accounting","tag-tax","business_type-small-business","business_type-growing-business"],"sage_meta":{"region":"en-us","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2023\/09\/GettyImages-529793801.jpg","imagine_tags":{"209":"Accounting","233":"Medium Businesses","230":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=29480"}],"version-history":[{"count":6,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29480\/revisions"}],"predecessor-version":[{"id":37793,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/29480\/revisions\/37793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/20119"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=29480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=29480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=29480"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=29480"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=29480"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=29480"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=29480"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=29480"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=29480"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=29480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}