Accruals prepayments

justlearning12

Hi,

Silly question of the day -

How do you know the value of accruals and prepayments at the end of the year for your clients?

If you have many clients, how do you keep tabs on them all?

Do you, as soon as you see the initial invoice, make adjustments at that point, or complete it all at year end? Do you have separate excel files containing such information?

PS - Clearly a student, just intrigued to how it all works in the real world.

Thanks

justlearning12

Anyone?

MarieNoelle

If the client requests management accounts I account for accruals and prepayments monthly or quarterly. Otherwise just once at year end.
I use repeating journals if posted on software and review the journals or reverse when invoices are raised (for accruals). Some accountants will keep an excel spreadsheet but I do not have clients with very large amount of invoices/ purchases so I haven't felt the need for spreadsheet.

justlearning12

Thank you