An accounting adjustment is an entry made to the general ledger at a specified date, rather than as part of the general day-to-day bookkeeping.
Accounting adjustments are made to ensure accurate reporting of nominal ledger balances used to prepare financial statements and to make tax-efficient adjustments.
Examples of accounting adjustments include:
- Accruing year-end accounting fees
- Current year tax provision
- Dividend adjustments
- Depreciation
