Accrued Expenses: Defined and Explained

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What Are Accrued Expenses?
How Accrued Expenses Work
Can Accrued Expenses Prevent A Business From Getting Approved for a Small Business Loan?
Personal and business credit scores Annual revenue Years in business Cash flow Availability of collateral
Accrual vs Cash Basis Accounting
Accrued Expenses Examples
Employee wages Services received Interest on small business loans Taxes Utility bills Computer equipment Office supplies
Prepaid vs Accrued Expenses
Accrued Expenses on a Balance Sheet
Recording Accrued Expenses
The Takeaway
3 Small Business Loan Tips
Online lenders generally offer fast application reviews and quick access to cash. Conveniently, you can compare small business loans by filling out one application on Lantern by SoFi. If you are launching a new business or your business is young, lenders will consider your personal credit score. Eventually, though, you’ll want to establish your business credit. If you need to borrow money to cover seasonal cash flow fluctuations, a business line of credit, rather than a term loan, provides the flexibility you likely need.
Frequently Asked Questions
Photo credit: iStock/Meranna
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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