Def - Journal Entry - Accrue & Reverse

Owned by Tom Williams
Last updated: Nov 30, 2020
1 min read

An Accrue & Reverse Journal Entry (aka Reversing Entry) is an automated journal entry, typically made on the first day of an accounting period, to remove accrual adjusting entries that were made at the end of the previous accounting period. Reversing Entries are used because they:

  • Reduce the chance of double-counting revenues and/or expenses, and
  • Allow for more efficient processing of the actual invoices that will be processed in the new accounting period