General

Accruing Annual Employee Bonuses

Recording the expense for bonuses earned in the current year but paid in the next year.

Account NameTypeDebit ($)Credit ($)
Bonus ExpenseExpense (+)20,000.00-
Bonuses PayableLiability (+)-20,000.00

💡 Accountant's Note

Bonuses must be matched to the year the performance occurred, even if the check isn't cut until February.

Automate this entry with the JEH Accounting Suite

Stop doing manual entry. Our VBA-powered ERP automatically generates your ledgers, Trial Balance, and Financial Statements.

No Subscriptions. Own your data.

QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

LinkedIn Profile

Discussion & Community Questions