How do I accrue for submitted but unpaid reimbursements at month-end?

March 27, 2026

At month-end, debit the appropriate expense accounts and credit an accrued liability account for all submitted but unpaid reimbursements, reversing the entry once payment clears. Vergo's reimbursement module surfaces pending submissions by job cost code, giving controllers a ready accrual list without manual export.

The Current Problem

For construction firms, managing reimbursements can be a major pain point at month-end close. Invoices from subcontractors, suppliers, and employees often get submitted late or go unpaid, making it difficult to accurately account for these liabilities. This can lead to inaccurate financial reporting and cash flow surprises.

Subcontractors submit invoices after the cutoff date, creating unpaid liabilities
Employees delay submitting expense reports, hiding reimbursement costs
Invoices get lost or delayed in the approval process, leaving liabilities unaccounted for
Lack of visibility into the reimbursement pipeline makes it hard to accrue properly

The Recommended Workflow

Collect Unpaid Reimbursements: Require all employees, subcontractors, and suppliers to submit outstanding invoices and expense reports before the month-end close cutoff.
Review and Approve: Quickly review and approve all submitted reimbursement requests to get them in the system.
Track the Pipeline: Maintain a detailed reimbursement pipeline report showing all submitted, approved, and outstanding items.
Accrue the Liabilities: For any approved reimbursements that haven't been paid yet, record the liability on your balance sheet.
Reconcile When Paid: When the payments are made, reconcile the accruals to ensure accurate reporting.

Tips for Construction Teams

Require all reimbursement requests to be submitted via a mobile app or web portal for visibility
Enforce a strict cutoff date and policy for submitting reimbursements before month-end
Integrate your reimbursement system with your ERP to automatically sync accruals and payments
Use construction-specific software like Vergo to streamline the entire reimbursement lifecycle
Train field teams on the importance of prompt reimbursement submissions
Monitor the reimbursement pipeline daily to identify any missing or delayed items

How Vergo Helps

Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.

Job-cost coding at the point of capture — field teams assign job number, cost code, and cost type from their mobile device before the receipt leaves the job site.
Per-job spend controls — set card limits by project, cost code, or cardholder so spending stays within approved budgets.
Mobile receipt capture — superintendents and PMs photograph receipts on-site with automatic data extraction.
Role-based approval workflows — route expenses through project managers, job-level approvers, and controllers based on your org structure.
Vergo integrates natively with major construction ERPs, syncing coded expenses directly into job cost and general ledger without manual re-entry.

Frequently Asked Questions

What if a reimbursement gets approved after the month is closed?

If a reimbursement is approved after the month is closed, you'll need to accrue it in the next month. Make sure to track these items and reconcile them when the payment is made.

How do I handle disputed reimbursements?

For any disputed or incomplete reimbursement requests, flag them in your pipeline report and exclude them from the month-end accrual. Resolve the disputes before the next close.

Can I automate the reimbursement accrual process?

Yes, construction-specific software like Vergo can automatically track the reimbursement pipeline, accrue unpaid items, and reconcile payments to streamline the month-end close.

What if I'm missing information to accrue a reimbursement?

If you're missing key details like the amount or cost code for a reimbursement, work with the requesting party to get the information you need. Don't guess - inaccurate accruals will just cause problems down the line.