I reviewed all 16 lines of the December 2025 accruals. Total accruals are **$133,234.98**, up $36,370 (+38%) from November's $96,864.95. Account 2100 is $90,533.68 (+$24,871) and 2110, the freight accounts, is $42,701.30 (+$11,499). Most of the growth has a stated reason. Six lines need to be resolved before close.

## Fix before close

| 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`). It should be in AP, not accruals. If the invoice has been or will be entered in AP, December is overstated by about $6.3k. Either reverse the accrual or confirm the invoice is held out of AP. |
| **AC-07** | Lanternfly Creative – catalogue milestone | $5,400.00 | **No support reference.** The basis is a PO, but no PO number is given. It's been open 2 months at the same amount with no invoice. Get the PO 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 – lease dispute legal | $12,500.00 | **Stale estimate.** It's been open 7 months, doesn't reverse, and has been exactly $12,500 every month with no invoice. It looks like nobody has re-evaluated it. At year-end, get an updated estimate of fees incurred from counsel. Also check whether the dispute itself needs a contingency assessment, separate from the fees. |
| **AC-11** | Kingsley Property – CAM charges | $6,750.00 | **Possible double count.** It's described as a "fourth-quarter estimate," up 46%, and open 3 months even though it's flagged as reversing. If October and November CAM were already expensed, accruing the full Q4 estimate in December counts them twice. Confirm that it covers December only, or the Q4 amount not yet recognized. |

## Verify

- **AC-06 Summit Facility, $7,600 (new):** A PO alone isn't a liability. Accrue only if the racking repair was finished, or work was done, by 12/31.
- **AC-16 Tallgrass inbound freight, $6,330 (+121%):** The increase is explained by stock bought ahead of the January price increase. Two checks: (a) the goods arrived or title passed by 12/31, and (b) the offsetting entry is **inventory**, not freight expense, because inbound freight is part of inventory cost.
- **AC-05 Palmetto Staffing, $9,843 (+134%):** This is backed by timesheets. Confirm it covers only the last two weeks and doesn't overlap a first-half-of-December invoice already in AP.
- **AC-02 Brightline Audit, $18,000 (+100%):** The note cites a second interim visit. Check that against the engagement letter's billing schedule. Year-end fieldwork that takes place in 2026 shouldn't be accrued here.
- **AC-13 / AC-15 outbound freight (+25% / +37%):** These are backed by carrier logs and manifests, and the increase fits the year-end volume. A quick sample against January invoices would confirm the amounts.

## Minor / housekeeping

- **Reversing lines that stay open:** AC-02 (2 months) and AC-11 (3 months) are flagged `reverses = Y` but show `months_open > 1`. Either the flag is wrong or the lines are being re-booked each month without review.
- **AC-04 Northbeam licences and AC-10 Clearwater health premium:** Both are flat contract amounts that are often billed in advance. Check that they belong in accruals rather than being paid or prepaid.
- **No issues:** AC-03, AC-08, AC-09 and AC-12 are steady and backed by usage records or the loan schedule. AC-09's small decrease is consistent with an amortizing loan.

**Possible overstatement:** AC-14 ($6,310) is the most likely error. If AC-07 and AC-06 aren't supported by work done by 12/31, they add another $13,000.

I worked only from the CSV; I didn't check it against invoices, POs or the GL.