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Why Accrual entry is good for accounting for Salary ?

Let suppose if  Salary is transferred on the same month, then it required or not ?

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Question added by Khaliq Raza MBA MS CFE AFA , Finance Manager , Vertex Trading
Date Posted: 2017/03/11
Ubaid Ullah Sajid
by Ubaid Ullah Sajid , Accounts Executive , ASNB Real Estate Management L.L.C.

When Salaries are paid in the same month, no accrual entry will be made.

When salaries of one month are paid in next month, Accrual is recorded.

Recording accrual helps budgeting & planning. Salary of January paid in February and recorded in February mean it relates to February. Actually this will be expense of January.

Deleted user
by Deleted user

if all salaries transferred in the same month you do not need to make an accrual for salary. 

Muhammad Naveed Tahir
by Muhammad Naveed Tahir , Assistant Manager Accounts/Tax , CARE Foundation

Accrual helps in budgeting & planning.

SAID OMAR
by SAID OMAR , Chief Accountant , Soobrutech Autoparts (K) Ltd

With accrual system of accounting an expense is recognised when incured and not necessarily when cash is paid. Cash salary may be paid the in the  month following the month in which it was incured.

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