Monthly Adjustments

Monthly Financial Reports

Monthly Financial Reports

Are monthly adjustments for payroll, accruals, deferrals, etc... needed?

If we don't do these adjustments at month end, does that mean the financial reports we generate do not really accurately reflect the financial position?

image of fancy scroll lines

Take some time to read my article on adjusting entries for my opinion on whether a small business owner should be booking adjusting entries monthly.

(Please note: You will need a Insider's Pass to read the whole article.)

I think your time would be better spent doing the monthly financial review. The review will give you a good idea how accurate your financial statements are.

Comments for Monthly Adjustments

Click here to add your own comments

Jan 08, 2012
Recording 2011 Expense Paid in 2012
by: Anonymous

How do I record an expense in 2011 when it is paid in January 2012? I forgot to reserve cheques for invoices received late and have already written 2012 cheques.

Thank you!

section divider

Year-end Accruals

You want to accrue the entry in 2011 and reverse the entry on January 1, 2012.

Your year-end accrual would be:

DR Appropriate Expense Account (on income statement)
CR Accrued Liabilities (in current liabilities on balance sheet)

Once you've made your accrual and reversed it, you would just process the invoice in the current year (2012).

Make sense?

Click here to add your own comments

Return to Small Business Bookkeeping.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better

Your Learning Curve!


Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference