I know this question has been asked before somewhere, but can't find it now!
For one of my client's last financial year I accrued for accountant's fees of £550 and reversed it at the beginning of this year. She has now received the bill which is £562.50 net, which leaves £12.50 in accountancy fees. What do I do with it? Leave it in there or journal it out into last year's accruals?
I'd just leave the difference in accountancy fees.
As for reversing at the start of the year - personally, I only reverse an accountancy fee accrual when the bill actually comes in, because not all accountants turn accounts around that quickly. It doesn't really matter in cases where you don't prepare monthly management accounts, but if you do you can end up with a large credit on the P&L for accountancy in month 1, and a large debit in (say) month 3. If you reverse the accrual in the month the bill comes in, that's avoided: you only get that little difference showing.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
