The monthly accrual journal: a reusable template
A simple, reusable template for your monthly accrual journals — what to include, how to reverse, and how to keep the schedule reconciled.
This walkthrough covers a reusable monthly accrual journal template in Xero, explaining how to set journal dates, write clear narratives, select correct nominal codes, apply auto-reversals, and maintain a supporting schedule. It helps bookkeepers and accountants who post recurring accruals and need accurate, reconcilable balance sheets each month-end.
If you post the same accruals every month, a template saves time and cuts errors. Here's a structure you can reuse.
What every accrual journal needs
- A clear narrative — supplier/cost, period, and basis (e.g. "Accrue March electricity — estimate from Feb usage").
- The right accounts — expense to P&L, liability to your
Accrualscode. - A reversal — date the auto‑reverse for the first of the following month.
- A supporting schedule — so the accruals balance can be reconciled at any time.
Reusable template
| Field | Value |
|---|---|
| Date | Last day of the month |
| Debit | Relevant expense (P&L) |
| Credit | Accruals (balance sheet) |
| Amount | Best estimate of the unbilled cost |
| Reversal | Auto‑reverse, 1st of next month |
| Reference | ACCR-YYYY-MM-<supplier> |
Keep the schedule honest
Maintain a running list of open accruals with expected amounts and the month each should reverse. At month‑end, the total should equal your Accruals nominal balance in Xero — any difference is a missing or stale accrual.
Let the template run itself
WorkWithLottie turns your recurring accruals into live schedules, posts the auto‑reversing journals, and flags any recurring supplier that hasn't been billed or accrued this month — a running, self‑reconciling version of this template.
Related: How to record accrued expenses in Xero · Month-end close checklist
More on Accruals
All guidesWhat is a reversing journal (and when to use one)?
A plain-English guide to reversing journals — what they are, why accruals use them, and how to avoid double-counting.
ReadWhat is an accrual? Definition & examples
A plain‑English definition of an accrual, how it differs from a prepayment, and common examples in month‑end accounting.
ReadHow to record accrued expenses in Xero
How to accrue for costs you've incurred but not yet been billed for in Xero — with the journal, the reversal, and a worked example.
ReadLet Lottie handle this for you
Automate accruals, prepayments and deferred income on top of Xero. Start your free 7-day trial.
Start free trial