When employees have worked during a period but have not yet been paid, the company accrues these wages as a liability until payment is made. Recording accrued liabilities helps you keep track of your financial obligations, even if you haven’t been billed yet. For instance, when you receive accrued liabilities an invoice from a vendor or supplier, you will update your accounts payable and begin processing the payment by the due date. So, you may record utility expenses as an accrued liability until you’ve received the bill. This is referred to as an accrued liability, an important concept for companies using accrual-based accounting. The definition…