An accrual is only as good as the reasoning behind the number. Auditors do not object to estimates, they object to estimates nobody can explain. This schedule records the basis for every accrued expense next to the amount, tracks prepaid amortization with live formulas, and compares last month's accruals to the actual invoices so your estimates get better over time. Pair it with our software category guides to see which tools fit your team. Once you have a shortlist, check the vendor profiles and the finance glossary for unfamiliar terms, then use our head-to-head comparisons before your first demo.
Built for: Accounting manager, Senior accountant, Controller
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Build the accrual list from evidence, not memory. Start from open purchase orders, goods received not invoiced, contracts with monthly fees, timesheets for contractors, and last month's accrual list. Ask budget owners what was received but not billed.
Write down the basis for every estimate. Record how the amount was calculated, for example hours times rate, a PO value, or the average of recent invoices. A reviewer should be able to recompute the number from the basis column alone.
Set the reversal period. Most accrued expenses are reversed on the first day of the next period, so the real invoice posts normally. Items such as bonus accruals are usually non-reversing and trued up until paid.
Update prepaid amortization. Add new prepaid invoices with their total, start month, and term. The monthly amortization and remaining balance calculate automatically; post the monthly amount and reconcile the remaining balance to the GL.
True up against actual invoices. When the invoices arrive, record them against last month's accruals. Large, repeated differences on the same vendor mean the estimate basis needs to change.
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Goods or services received in the period but not yet invoiced or recorded. One line per accrual.
| Vendor | Description | GL account | Basis of estimate | Amount | Reversal period | Owner / support |
|---|---|---|---|---|---|---|
| Northwind Logistics | August freight, not invoiced | 5310 Freight-out | Carrier portal shipments x contract rate | 18,450.00 | Sep 2026 | AP / portal export |
| Kessler & Co LLP | August legal fees | 6420 Legal fees | Hours reported by firm x agreed rates | 12,800.00 | Sep 2026 | Controller / firm email |
More free templates finance teams use alongside this one.
Slow closes are rarely caused by slow accountants. They are caused by tasks that could have run in parallel waiting on each other, and by a review step that only starts once everything else is finished. This checklist sequences the close by dependency rather than by habit.
A reconciliation proves a balance sheet number is supported by something outside the general ledger. Most weak reconciliations fail in one of two ways: the supporting balance is just another GL report, or reconciling items sit unexplained for months. This template forces an independent support source, ages every reconciling item, and calculates the unexplained difference so nobody can round it away.
Flux analysis is a close control, not a reporting exercise. Its job is to catch errors before the numbers leave accounting: a missed accrual, a misclassified invoice, a reversal that did not run. That only works if the thresholds are set in advance and the explanations say why a number moved, not just that it moved. This template flags variances automatically and sets a standard for commentary.
It is a list of expenses incurred in a period but not yet invoiced or recorded, with the amount, GL account, basis of estimate, and when each accrual reverses. It supports the accrued liabilities balance and the journal entries posted at month end.
Divide the total amount paid by the number of months in the service period, then expense that amount each month. For example, a $54,000 twelve-month insurance policy amortizes at $4,500 per month. The remaining balance is the total less the amount expensed to date.
Accruals for a specific invoice that will arrive next month are usually reversing, so the invoice can be posted normally. Accruals that build over time and are settled later, such as annual bonuses, are usually non-reversing and adjusted each period to the current estimate.
They need to be reasonable and supported, not exact. What matters is a documented, repeatable basis and a true-up process that catches systematic under- or over-accrual. Materiality thresholds for booking small accruals are a company policy decision.
