Question

Is the HR department responsible for accruals, or is this a concern for the accounting department? Why do you think so?

Answer 1

HR department has the responsibility of conducting employment searches for filling open positions within a company as well as managing employment records among other things.

Payroll department calculates how much each employee is to be paid and may distribute the checks (or stubs indicating the direct deposits to the employees’ bank accounts).

Accounts payable department handles the payment of the company’s other expenses.

Accounts receivable department handles payments made to the company.

Accounting department takes the information from these other three departments and combines into reports such as balance sheet (assets vs liabilities) and profit and loss statements (income vs expenses)

Hence HR department is only responsible for the employment searches and their payments but not responsible for the accruals made during the period. It will be only concerned with the accounting department