When are unpaid bills reportable as accrued expenses?
The basic rule is that you must report an accrued expense any time you have received goods or services but have not paid for them by the end of the reporting period. Q: What if I haven’t received an invoice from the vendor yet? A: If you have received the goods or services, you must report the accrued expense even if you have not received an invoice. If you do not know the exact amount, you may estimate the amount of the expense. When reporting an estimate, note that fact on Schedule F. Q: We have a contract to pay our campaign consultant $1,000 per month. If the closing date of the campaign statement falls during the middle of the month, say March 17, must we report an accrued expense for the period March 1 through March 17? A: No. When you have agreed in writing to pay a contractor a set amount at regular intervals, it is not necessary to prorate the amount owed to the contractor if the reporting period closes before the end of the contract period. Q: We reported an estimated accrued
