I reviewed the December accruals: 16 lines totalling **$133,234.98**, up $36,370 (+37.5%) from November's $96,865. Account 2100 (general accruals) is $90,534 and account 2110 (freight accruals) is $42,701. Most lines look reasonable. Five need follow-up before the year-end close is signed off.

## Needs action

| ID | Amount | Issue |
|---|---|---|
| **AC-14** Coastline fuel surcharge | 6,310.20 | **The invoice has already been received** (`invoice_received = Y`, and the support is a carrier invoice). If that invoice is in accounts payable, this cost is counted twice. Reverse the accrual or confirm the invoice isn't booked. Also check whether the freight invoice for AC-13 came with it, since the surcharge is exactly 33.9% of AC-13's freight in both months. |
| **AC-07** Lanternfly Creative | 5,400.00 | **No supporting document.** The basis says "PO" but no PO is referenced. The amount is unchanged from November, it's the second month accrued, and no invoice has arrived. Get the PO and evidence that the first milestone was delivered by 12/31. Otherwise, remove it. |
| **AC-01** Harlow & Finch legal | 12,500.00 | **Old, unchanged estimate.** It has been open 7 months, doesn't reverse, and has never been invoiced. Get a current fee estimate from the law firm; auditors will want one at year end. The lease dispute itself may also need to be assessed as a possible loss. |
| **AC-16** Tallgrass inbound freight | 6,330.00 | **The cost likely belongs in inventory, not expense.** Freight on goods bought ahead of the January price increase is part of what that inventory cost. Confirm the cost is recorded against inventory and the goods were received by 12/31. It is up 121% from November. |
| **AC-06** Summit racking repair | 7,600.00 | **A PO alone doesn't prove the work was done.** Confirm the repair was completed by 12/31; if it was only ordered, it isn't a December cost. Also check whether it is a repair (expense) or an upgrade that should be capitalised. |

## Worth a quick check

- **AC-02 audit, $18,000 (double November).** This matches two interim visits with no invoice for either. Confirm against the engagement letter and that no November invoice has arrived. Also confirm your policy on accruing the rest of the FY25 audit fee.
- **AC-05 temporary labour, $9,843 (+134%).** Plausible for peak season, but tie it to the December timesheets and agreed rates.
- **AC-11 landlord common area charges, $6,750.** This works as a running Q4 total ($2,250/month vs $2,310 in November). Confirm against the landlord's estimate and that no Q4 charges were already billed.
- **AC-13 and AC-15 freight (+25% and +37%).** These are consistent with peak season and the extra receipts in AC-16; check them against the carrier logs and parcel manifests.

## Look fine

AC-03 electricity, AC-04 software licences, AC-08 telecom, AC-09 loan interest (the small drop fits the loan being paid down), AC-10 health premium and AC-12 waste removal. They have small or no changes from November and appropriate support.

If AC-14 is a double count and AC-07 can't be supported, the accruals are overstated by about **$11,700**. That's before any changes to AC-01, AC-06 or AC-16.

It's now October 2026, so invoices for most of these have probably been paid. If you can share the AP history from January 2026 onward, I can compare each accrual with what was actually billed. That would settle most of the open questions above.