What Does Accrued Mean? How Accruals Work in Business

The term “accrued” is important in business and accounting, and knowing how accrued accounts work will come in handy as you manage your small business.

What Does Accrued Mean?

The word accrued is an adjective, describing something that accumulates over time. In the case of a business, accruals are often money, but time can also be accrued, as in paid time off. Accruals work in two ways:

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