accountinglads
New Member
Accrued salaries and wages are expenses your company has to pay but has not yet settled. Wages and salaries for employees are recorded on the accounts at the close of the period which represents earnings that have not been paid yet. As a result of this accrual, the amounts the company spends and makes in any period appear correctly on the financial statements. Should a pay period happen after the accounting period, the unpaid salaries are included in accrued salaries. You will see them listed as liabilities on the balance sheet.