Journal Entry Checklist

Identify whether this is an accrual, deferral, reclass, depreciation, or correcting entry. The classification drives whether a reversing entry is needed next period and which lead schedule the AJE ties to.

Attach the source documentation: vendor invoice, payroll register, depreciation schedule, amortization roll-forward, or bank statement. Recurring AJEs (rent prepaid, insurance amortization) should reference the underlying schedule, not be re-derived from scratch.

Tie each line to the underlying invoice, register, or schedule. For accruals, confirm the cut-off — only the portion of expense earned through period-end belongs in this entry.

Pull the chart of accounts and confirm each debit and credit hits the correct GL number, class, location, and department. A common error is posting to a parent account when a sub-account exists, which breaks departmental P&Ls.

Foot the entry. Most ERPs (QBO, Xero, Sage Intacct, NetSuite) block out-of-balance posts, but spreadsheet-prepared entries imported via journal upload can break if a row is dropped during paste.

Confirm capitalization thresholds, revenue recognition timing under ASC 606, and lease treatment under ASC 842 where relevant. Entries that cross policy thresholds (large accruals, write-offs, asset reclassifications) need explicit policy citation in the memo.

Entries above the firm's materiality threshold (commonly $5K-$25K for SMB engagements, set per client) require partner sign-off rather than manager approval. Below threshold, the second-reviewer process is sufficient.

Segregation of duties: the preparer cannot also be the approver. Route through Karbon, TaxDome, or the firm's review queue. The reviewer ties amounts to workpapers, confirms account coding, and signs off in the workflow tool.

Material entries require partner or controller approval before posting. Capture the digital signature in the workflow tool — wet signatures on printed JEs are no longer accepted by most reviewers and create friction at audit time.

Post in the correct period. If the period is already closed in QBO / Xero / Sage, the entry must either be posted to the next open period or the close password must be temporarily lifted by the controller. Don't backdate without documenting the close-reopen.

Pull the working trial balance after posting and confirm the affected accounts moved by the expected amounts. Update the lead schedule so the workpaper trail stays current.

Never edit a posted entry in place — the audit trail breaks. Prepare a correcting JE that reverses the bad post and re-records the correct amounts, with a memo referencing the original JE number.

File the entry, supporting workpapers, memo, and approval signatures in SmartVault, Suralink, or the firm's document management tool. Use the firm's naming convention (client / period / JE-number) so audit selections can pull the package in seconds.

Add the entry to the period's journal entry log with JE number, amount, accounts touched, preparer, approver, and reversing flag. The log is what the audit team will sample from at year-end — keep it complete in real time, not at year-end.