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1. It’s understandable to be concerned about not receiving adjusting entries from your accountant, as these entries are crucial for ensuring that your financial statements accurately reflect the financial position and performance of your corporation. Let’s break this down to address your concerns and provide guidance:

   What Are Adjusting Entries?

   Adjusting entries are journal entries made at the end of an Accounting period. They ensure that income and expenses are recognized in the period they occur, adhering to the matching principle of Accounting. Common types of adjusting entries include:

   1. Accrued Revenues: Income earned but not yet recorded.
   2. Accrued Expenses: Expenses incurred but not yet recorded.
   3. Deferred Revenues: Money received before services are delivered or goods are provided.
   4. Prepaid Expenses: Payments made in advance for services or goods.
   5. Depreciation: Allocating the cost of tangible fixed assets over their useful lives.
   6. Inventory Adjustments: Necessary if your company holds inventory.

   Is It Normal Not to Provide Adjusting Entries?

   • Expectation: It is typically expected that accountants, particularly those responsible for preparing financial statements, provide adjusting entries. These adjustments are a critical part of closing the books and ensuring the accuracy of financial reports.
   • Occasionally Exceptions: However, there could be scenarios where an accountant might not provide adjusting entries:
   • The accountant’s role might be limited to tax preparation and not full-service Accounting.
   • There might be a reliance on in-house or external bookkeepers for such adjustments.
   • Miscommunication or misunderstanding about responsibilities can lead to such oversights.

   Possible Reasons for the Lack of Adjusting Entries

   1. Role Confusion: There might be a misunderstanding regarding what services your accountant is supposed to provide. It’s worth reviewing your contract or engagement letter to clarify this.

   2. Limited Engagement: If your accountant is engaged only for tax purposes, they might not handle day-to-day Bookkeeping or financial statement preparation, which includes making adjusting entries.

   3. Overlooked Process: Adjusting entries could simply be overlooked or an informal agreement might not have been properly communicated.

   Steps to Resolve the Issue

   1. Clarify Roles and Expectations: Have a direct conversation with your accountant to understand their role and responsibilities concerning your Bookkeeping needs. Ensure there’s a mutual understanding of what is expected.

   2. Engage a Bookkeeper: If your accountant is focused

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