I know reversing entries are used to keep from confusing and over/under estimating a certain account in the next period, but here's my question. Are reversing entries really necessary in your accounting period?; even though they are meant for reminders there are other ways of doing that without posting to your journals/ledgers. (sticky notes ftw lol =P) (no I wasn't serious on that last comment even though they are useful :D)

You are asking does one have to do reversing entries?

I for one don't like them. It is just as easy to keep track of the adjustments as it would be to reverse them and pay them off when the time comes.

This way you just pay down your receivables.

Either way is acceptable though.

So to answer your question: No, reversing entries are not really necessary in your accounting period.

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Originally Posted by Superfly999

I know reversing entries are used to keep from confusing and over/under estimating a certain account in the next period, but heres my question. Are reversing entries really necessary in your accounting period?; even though they are meant for reminders there are other ways of doing that without posting to your journals/ledgers. (sticky notes ftw lol =P) (no I wasn't serious on that last comment even though they are useful :D)

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Reversing entries are not really necessary in your accounting period. They are optional and used to the discretion of the bookeeper or firm.

Reversing journal entries are optional. The company can choose to prepare them or not to.

Reversing entries are just optional, personaly I find these entries annoying, why reverse, if you can just adjust. But it still depends on the company policy if they are going to use reversing entries in their books.

You can reverse the entries, but I feel more comfortable just making adjusting entries

Lol thanks guys I figured it out a few days after I posted which was in April so you can stop posting :P Thanks for trying to help though <3

Well, they are optional. There are other alternatives so you could get away with it