Accounting for expenses before receiving closing documents

Hello everyone. I've encountered a methodological issue and need some advice. Our contractors provided services this month, but the physical invoice won't arrive until mid-next month. Because of this, our closing reports for the month show unrealistic profits because major expenses haven't yet been reflected. I'm looking for a liability automation system that allows me to record future accruals based on orders, so I can see the company's actual balance before the official paperwork arrives.

The cash method, where expenses are recorded only upon receipt of a paper invoice, often distorts management reporting. Recording liabilities at the time of service, even without an official invoice, is the only way to see the true profitability of a business in the current month.

You're right, the lack of information about services rendered until the official invoice arrives significantly distorts monthly financial results. Try setting up end-to-end accounting using precoro. For example, you can find their official website here. The platform connects procurement and accounts payable processes in a single window. You'll be able to see planned and confirmed expenses based on open purchase orders and acceptance certificates, creating a realistic picture of costs in the current period.