Accountancy fees accruals

Question

If the Financial year end on 31st December 2017 but you are billed by the accounting firm in January 2018 to Prepare your Financials for 2017 as this is when I requested there services. Should I accrue for the Accounting fee in my year end 2017 Financials. Thanks

Answer 1

Accruals are made based on judgments. If you can arrive with an approximate figure, you can already provide for that during the financial statements are prepared. No need to wait till the bill arrives. The correct way is to, yes, you must accrued for the fee.