## December Close Flux Analysis Results

I've identified **6 accounts that need review** in the December 2025 close:

### 🚨 **Critical Issues**

1. **Goods Received Not Invoiced (Account 2050)** — SIGN FLIP ISSUE
   - Moved from -$18,420 (liability) to +$44,981 (positive)
   - This should be a payable (negative). A $63,401 swing suggests either:
     - Data entry error — sign got flipped
     - Goods receipt/accrual reversal that wasn't documented
   - **Action:** Verify the invoice accrual timing and GR/IR clearing

2. **Sales Tax Payable (Account 2150)** — LARGE INCREASE
   - Jumped from -$23,415 to -$91,760 (up 317% YoY)
   - Expected for December, but verify:
     - November sales cutoff looks correct
     - December sales accrual complete
   - **Action:** Confirm sales and use tax rates applied correctly

3. **Construction in Progress (Account 1420)** — COMPLETE REVERSAL
   - Built to $72,400 in November, cleared to $0 in December
   - Likely capitalized to equipment, but confirm:
     - Amount ($72,400) matches the increase in Furniture & Equipment 
     - Depreciation schedule updated if applicable
   - **Action:** Review the capitalization journal entry

### ⚠️ **Reserve/Allowance Issues** (accounting correct, but note the changes)

4. **Allowance for Doubtful Accounts** — up 29.8% MoM
5. **Inventory Reserve** — up 20% MoM

Both contra-assets increased significantly in December. These are normal for year-end, but verify:
- Aging analysis supports the allowance level
- Inventory obsolescence assessment is complete

### 📊 **Favorable Movements (no action needed)**
- Inventory increased 28% YoY — suggests strong growth or seasonal buildup
- COGS and salary expenses up proportionally to sales
- Retained earnings down due to the year's net income disposition (likely appropriate)

**Start with items #1-3 above** — those are the ones most likely to need adjustment before you close the books.