Accounting Adjustments Explained

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