I reviewed the December accruals file. There are 16 lines totalling **$133,235**, up $36,370 (+38%) from November's $96,865. Account 2100 is $90,534 (+$24,871) and account 2110, freight, is $42,701 (+$11,499). I only had this file to work from, with no GL, invoices or contracts. So the items below are things to check, not confirmed errors.

## Fix before close

**AC-14, Coastline Carriers fuel surcharge, $6,310.20.** The file says the invoice has been received (`invoice_received = Y`), and the support is the carrier's invoice. A received invoice should go through AP, not stay as an accrual. Check whether it's already been entered in AP. If it has, this $6,310 is counted twice. If it hasn't, move it to AP and remove the accrual.

**AC-07, Lanternfly Creative, $5,400.** This accrual has no support: the basis is "PO" but `support_ref` is blank. It has also sat at the same amount for two months with no invoice. Get the PO number and confirmation that the first milestone was actually delivered by 31 Dec. If it wasn't delivered, there's nothing to accrue yet.

**AC-01, Harlow and Finch LLP legal fees, $12,500.** This one has been open for 7 months at exactly the same amount. It's an estimate, it doesn't reverse, and no invoice has arrived. A legal estimate that hasn't moved in 7 months is stale. At year end, get an updated figure for fees incurred to date from the law firm (or legal), and agree it to the auditors' legal letter. Also check whether the lease dispute itself needs a provision or disclosure, separately from the fee accrual.

## Check how these are booked

**AC-16, Tallgrass Logistics inbound freight, $6,330 (+121%).** The increase fits the note about stocking up before the January price rise. But inbound freight on goods received is normally part of inventory cost, not an expense. Check that the debit went to inventory. If those goods are still on hand at year end, expensing the freight understates inventory and overstates December expense.

**AC-06, Summit Facility Services racking repair, $7,600 (new).** A PO only shows the repair was ordered, not that it was done. Confirm the work was finished by 31 Dec, or accrue only the part that was. Also confirm it's a repair (expense) and not an upgrade that should be capitalised.

## Big increases: explanation needed or confirm

| ID | Item | Change | Comment |
|---|---|---|---|
| AC-02 | Brightline Audit | +$9,000 (+100%) | The note covers it (second interim visit). The two visits together come to $18k, so check that matches the fee in the engagement letter. |
| AC-05 | Palmetto temp labour | +$5,629 (+134%) | Backed by timesheets. Probably extra receiving work from the stock-up, but get that confirmed. Tie the amount to approved timesheets × rates. |
| AC-11 | Kingsley CAM charges | +$2,130 (+46%) | Consistent with a growing Q4 estimate (2 months ≈ $4,620, so 3 months ≈ $6,930). It has been open 3 months, so check whether the landlord has sent a Q4 reconciliation. |
| AC-15 | Swiftway Parcel | +$3,068 (+37%) | No explanation. It covers only "last week of December", so check the amount against the manifest. |
| AC-13 | Coastline outbound freight | +$3,719 (+25%) | The stock-up note explains *inbound* freight, not outbound. This needs its own reason (e.g. holiday sales volume) tied to the carrier log. |

## Look fine

AC-03, AC-08, AC-09, AC-10 and AC-12 are all within ±6% of November, are backed by usage or contract, and reverse properly. AC-04 (Northbeam licences) is a flat contract amount and is fine, though licences are usually billed in advance, so it's worth asking why no invoice has come in.

## Summary
- **Possible overstatement:** AC-14 ($6.3k) if it's already in AP, plus AC-07 ($5.4k) and AC-06 ($7.6k) if the work wasn't done by 31 Dec.
- **Wrong account:** AC-16 ($6.3k) should probably go to inventory, not expense.
- **Stale:** AC-01 ($12.5k) needs an updated estimate from the law firm.
- **Ownership:** Tomas Herrera owns 7 of the 16 lines, including all the freight. It makes sense to go through the freight items with them together.

I can turn this into a tracker CSV with an owner and status for each item if that's useful.