What it is
Accrued expenses are costs incurred in the period but not yet invoiced or paid, such as wages, interest, utilities, professional fees and bonuses. Recording them matches the expense to the period it relates to.
This workbook lists each accrual with its calculation basis and support, the amount recorded at period end, whether it reverses, and the actual invoice received later, so the accrual estimate can be compared with the actual and the balance tied to the general ledger.
When to use it
- Each month-end and year-end close.
- As support for the accrued liabilities lead schedule in an audit or review.
What’s inside
- Description, vendor, GL account and calculation basis
- Amount accrued at period end and reversal flag
- Subsequent invoice amount and estimate-vs-actual difference
- Total accrued liabilities with tie-out to the general ledger
- Preparer and reviewer sign-off
Standard cited
This template follows US GAAP accrual basis. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is the difference between an accrual and accounts payable?
Accounts payable is for invoices received and recorded. An accrued expense is for costs incurred where no invoice has been received or recorded yet, so the amount is often estimated.
Why compare accruals to subsequent invoices?
It tests how good the estimates were. Consistent over- or under-accruing points to a process problem or, in an audit, possible management bias in estimates.
Related templates
- Prepaid Expense Amortization Schedule (Excel)
- Search for Unrecorded Liabilities Workpaper
- Month-End Close Checklist (Excel)
Last updated 11/04/2026. All free templates.