Reversing entry: when and how to use it
Accruals, cut-off and reversal logic: how reversing entries should be used in 2026.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Reversing entry: when and how to use it
Updated March 2026 - A reversing entry cancels a closing entry at the start of the next period. It is useful for cut-off discipline and month-end clarity.
See also accounting process, accounting follow-up and training expense accounting.
Main point
The issue is not only the journal entry, but the consistency between closing and reopening.
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Conclusion
Reversing entries are simple only when the closing process behind them is clear.
Need to review your closing procedures?
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Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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