more-arw search

Q&A Forum

booking accruals at month end

Hi,

I have a question regarding month end, precisely accruals.

Example:

The previous month period is now close, month end date 25 july. On 30th of the same month while booking the accrual journal i receive two invoices dated 26th July and 10th July. Would I need to accrue for both of the invoices ?

Thanks

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

I assume the month end close day is purely an example, because it should be the last day of the month.

The technical answer is yes.

The real practical answer is are those two invoices material. If you are $1M business and got two invoices for $50 a piece, I wouldn't bother, but if they were for $5,000 a piece, then yes.

Caveat: Year End. You need to capture everything or make a good faith effort to accrue.

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

I would add that you need to check that both invoices are for goods or services delivered/used by July 25th, regardless of invoice date.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Good catch my friend..

230 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.