Take control of your monthly financial close with this Monthly Accruals Policy, designed to streamline accruals, reinforce compliance, and elevate the accuracy of your reporting. This tool empowers accounting teams to confidently allocate expenses, match costs to revenues, and ensure all liabilities are recorded in the correct period, reducing errors and strengthening internal controls. It simplifies complex processes and helps you meet management objectives and GAAP requirements, making your month-end close faster, more reliable and less stressful with clear procedures and practical guidance.

This tool includes two samples. Sample 1 establishes standards and step-by-step procedures for identifying, recording and reviewing monthly accruals, emphasizing timely entry and proper internal controls to guarantee that valid payables are captured. It guides controllers through the process of determining which expenses qualify for accrual, ensuring accurate coding and documentation. Sample 2 addresses reserves and accruals, detailing company policy for their calculation, adjustment and documentation in line with U.S. GAAP.

Sample procedures include:

• Certain accruals will be reversed automatically in the next month. 
• Dividends, interest and sales tax should be recorded when corresponding revenues are recorded.
• The balances of all reserves and accruals recorded should be properly supported with the appropriate detailed documentation, analyses and calculations.