Accounting glossary
What is reversing entry?
A journal entry that automatically undoes an accrual at the start of the next period — book the estimate in March, reverse it April 1, let the real bill land clean. The technique that keeps accruals from double-counting.
Example
You accrue $3,000 of unbilled wages at year-end. On the first day of the new year a reversing entry cancels it, so when the real payroll posts there is no double count.
Reversing entries exist to make accruals safe: the accrual is honest at year-end and cannot contaminate the next period.
In SeroBooks
Reversing entries are supported in the accounting engine's entry types. Journal entries guide →
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