## December 2025 accruals review

There are 16 accruals totalling **$133,235**, up $36,370 (+38%) from November's $96,865. Account 2100 (general) is $90,534, up $24,871. Account 2110 (freight) is $42,701, up $11,499.

Five items need action before close.

### Fix before close

1. **AC-14, Coastline Carriers fuel surcharge ($6,310.20): the invoice has already been received** (`invoice_received = Y`, and the support ref is the invoice itself). If that invoice is in AP, the cost is booked twice. Reverse the accrual, or show that the invoice isn't in AP yet.
2. **AC-07, Lanternfly Creative ($5,400): there's no support reference.** The basis says PO, but no PO number is listed. The same "first milestone" amount has been accrued for 2 months with no invoice. Confirm the milestone was actually delivered by 12/31. If it wasn't, nothing should be accrued. Either way, attach the PO.
3. **AC-01, Harlow and Finch legal ($12,500): this estimate looks stale.** It hasn't changed in 7 months, doesn't reverse, and no invoice has arrived. Get an updated estimate from counsel covering work to date and the status of the dispute. At year-end the auditors will want this, probably through a legal letter. Also find out why nothing has been billed in 7 months.
4. **AC-06, Summit racking repair ($7,600, new): a PO alone isn't enough support.** Accrue only if the repair was finished by 12/31, and get a completion sign-off or work order. Also confirm it's a repair to expense and not an improvement to capitalize.
5. **AC-16, Tallgrass inbound freight ($6,330, +121%): check where the other side of the entry goes.** Freight on inventory receipts should go into inventory cost, not freight expense. These were year-end pre-buy receipts, so most of the stock is probably still on hand. Also check the shipping terms, and that the matching inventory receipts are recorded in December.

### Large increases to confirm

- **AC-02, Brightline audit ($18,000, +100%):** the note says there was a second interim visit. Neither visit has been invoiced. Make sure the November visit wasn't billed somewhere else, which would double-count it. Confirm the $18,000 matches the engagement letter's billing for both visits.
- **AC-05, Palmetto temp labour ($9,843, +134%):** match it to the December timesheets. Holiday peak staffing may explain it.
- **AC-11, Kingsley common area charges ($6,750, +46%):** the increase fits a running total for Q4 (about $2,310 a month in Oct–Nov and $2,250 a month across Q4). Confirm against the landlord's estimate and allow for any year-end reconciliation true-up.
- **AC-13 and AC-15, freight (+25% and +37%):** these look consistent with the pre-buy volume. Spot-check them against the carrier log and the parcel manifest.

### Look reasonable

AC-03 power, AC-04 software licences, AC-08 telecom, AC-09 loan interest (down slightly, consistent with principal being paid down), AC-10 health premium and AC-12 waste are all within 0–6% of November and backed by contracts or usage. For AC-04 and AC-10, confirm the vendor doesn't bill in advance, which would make them prepaid rather than accrued.

### General points

- The file doesn't show which expense account each accrual is booked to, so I couldn't check where the other side of the entries goes (it matters most for AC-06 and AC-16).
- AC-08 and AC-12 both use the generic support ref `USAGE-DEC`, so link the actual documents.
- January invoices arriving after close are the best test of these estimates. Compare them to these amounts once they come in.