Accounting Glossary 

Reversing entries definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Reversing entries can be defined as: Optional entries recorded at the beginning of a period that prepare the account for the usual journal entries as if adjusting entries had not occurred in the prior period. Reversing entries are done at the end of the accounting cycle. We can even say that reversing entries are done after the accounting cycle, reversing entries being implemented after the financial statements have been generated and after the closing process. Reversing entries are optional and are not actually perfect accrual accounting, reversing entries resulting in the books being incorrect for a time but using reversing entries can be a great system to use because they can separate the normal accounting process from the adjusting process.