# December 2025 accruals review

The file has 16 accruals totalling **$133,234.98**, up $36,370 (+38%) from November's $96,864.95. Account 2100 is $90,533.68 (+$24,871) and freight account 2110 is $42,701.30 (+$11,499). Most of the increase has a reasonable explanation: December peak season, the audit timing and a new repair. Five items need action or support before close.

## Needs action

| ID | Vendor | Amount | Issue |
|---|---|---|---|
| **AC-14** | Coastline Carriers (fuel surcharge) | $6,310.20 | **The invoice has already been received** (`invoice_received = Y`, support is `CARRIER-INVOICE-DEC`). If the invoice is entered in AP, keeping this accrual counts the cost twice. Either remove the accrual and book it through AP, or confirm the invoice isn't in the December AP subledger yet. |
| **AC-07** | Lanternfly Creative | $5,400.00 | The basis is a PO, but **there is no support reference**. The amount is the same as November, no invoice has come in after 2 months, and the item is marked reversing. Get the PO number and confirm the first milestone was actually delivered by 12/31. If it wasn't, nothing should be accrued. |
| **AC-01** | Harlow and Finch LLP | $12,500.00 | **The same estimate has been carried for 7 months.** It doesn't reverse and no invoice has arrived. Get an updated estimate of unbilled fees from counsel as of 12/31. Also check whether any Harlow and Finch invoices paid since June were charged against this balance, or expensed on top of it. |
| **AC-06** | Summit Facility Services | $7,600.00 | This is new, based on a PO. A PO alone doesn't create a liability. Confirm the racking repair was **finished by 12/31** with a work order or sign-off, not just ordered. |
| **AC-16** | Tallgrass Logistics | $6,330.00 | Up 121%. The increase is explained (stock bought early ahead of the January vendor price increase), but **inbound freight on inventory receipts should be capitalized into inventory**, not expensed. Check which account the debit side was posted to. |

## Ask for support on the variance

- **AC-11 Kingsley Property (+46%, $6,750):** The landlord's Q4 common area estimate has been open 3 months. Check whether $6,750 is the full quarter or a cumulative amount, and that it isn't also being accrued partly through the monthly rent. Get the landlord's estimate letter.
- **AC-05 Palmetto Staffing (+134%, $9,842.60):** This is plausible for peak season, but tie it to the December timesheets. Confirm "last two weeks" doesn't overlap with any Palmetto invoices already received for December.
- **AC-02 Brightline Audit (+100%, $18,000):** The second interim visit is in the engagement letter, so this is supported. But an item marked reversing shouldn't show 2 months open. Confirm November's $9,000 reversed, so $18,000 is the total incurred to date and not $27,000. Check the same logic on AC-07.

## Look reasonable

- **AC-13 and AC-15 (freight and parcel):** Freight is up about 25% and parcel up 37%. These match each other and fit peak shipping. AC-14's +24.7% also matches AC-13's +24.9%.
- **AC-03, AC-08, AC-12 (utilities, telecom, waste):** Changes are between +1% and +6%.
- **AC-04 Northbeam:** A flat contract amount.
- **AC-09 Bayline Bank:** Interest went down slightly, which fits a principal balance that is being paid down.
- **AC-10 Clearwater:** Up $240, consistent with a small change in headcount.

## Exposure summary

- **Likely counted twice:** AC-14, $6,310.20.
- **Unsupported or possibly overstated:** AC-01, AC-06 and AC-07, $25,500 together. This depends on how the follow-ups come back.
- **Classification risk:** AC-16, $6,330 that may belong in inventory rather than expense.

Ownership is concentrated. Tomas Herrera owns 7 of the 16 accruals ($57,812), including AC-06, AC-14 and AC-16, so they are the main person to follow up with for close.