Confusion about accruals...

So basically client booked accrued liabilities and just expenses it leaving the accrual alone since its recurring.

However, on the expense side since it doesn't get reverse our year end is December 31st but I see bills from for example a water bill for Novemebr - Decmeber 31st. Since I assume its paid off in January.

My senior said that makes sense and it doesn't get reversed since accrued libailities. But I don't get it, don't we get overexpensed?