Difference Between Accrued Salary And Prepaid Salary

Accrued Salary is the amount payable by the company to an employee who delivered his services for the month but still the payment is not received at the end of the accounting period while Prepaid Salary is an advance payment made to an employee who still need to deliver his services for the amount received during the month.

As Accrued Salary is an example of Accrued Expenses, so it is a Current Liability for a company while Prepaid Salary is a Current Asset for a company as it is an example of Prepaid Expenses or Expenses Paid In Advance.