Easy Tech TutsHow to Enter Accrued Expenses in QuickBooks Online Easily 2026
By Impran M N
Accrued expenses — costs your business has incurred but hasn't paid yet — need to be recorded so your financial statements reflect true obligations, not just cash that's changed hands. This guide shows how to enter accrued expenses in QuickBooks Online step by step. It's built for small business owners and bookkeepers who want financials that hold up for tax purposes and lender reviews.
01Understand what qualifies as an accrued expense
Identify costs that have been incurred during the period but won't be billed or paid until later, such as utilities or unpaid wages.
02Create a journal entry
Use QuickBooks Online's journal entry feature to debit the relevant expense account and credit an accrued liabilities account.
03Enter accurate amounts and dates
Make sure the entry reflects the period the expense actually applies to, not the date the bill eventually gets paid.
04Reverse the entry once paid
When the actual bill arrives and is paid, reverse the accrual so the expense isn't counted twice.
05Review your financials for accuracy
Check your profit and loss and balance sheet after entering accruals to confirm the numbers reflect the correct period.
Frequently asked questions
Why do accrued expenses matter if I haven't paid the bill yet?
They ensure your financial statements match the accrual basis of accounting, giving a more accurate picture of obligations during the period.
Do I need to reverse accrued expense entries?
Yes, once the actual expense is paid and recorded, you should reverse the original accrual to avoid double-counting.
Is this feature only useful for large businesses?
No, even small businesses benefit from accruing recurring costs like utilities or payroll to keep monthly reports accurate.
Can QuickBooks automate recurring accrued expenses?
You can set up recurring journal entries for predictable accruals, reducing the need for manual entry each period.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
