Proper bookkeeping requires you to understand multiple accounting terms and financial reports.
For instance, your company’s balance sheet provides you with essential information about your business, displaying the total amount of assets, liabilities, and owner’s equity as of a specific date.
Two of the most important items found on your balance sheet are accrued expenses and accounts payable.
Both accounts are expenses and are considered short-term liabilities, meaning that they’re due and payable within less than a year. Though both are liabilities, there are several differences between the two.