Despite this, reversing accruals are optional or can be used at any time since they don't make a difference to the financial statement. They can be used to match revenues, expenses, and prepaid items to the current accounting period—but cannot be made for reversing depreciation or debt.

Why would you reverse an accrual?

Concept of Reversals:

Reversing entries are made on the first day of an accounting period in order to offset adjusting accrual/provision entries made in the previous accounting period. Reversing entries are used to avoid the double booking of revenues or expenses when the accruals/provisions are settled in cash.

Should all accruals be reversed?

Reversing accruals are optional and can be implemented at any time because they do not affect the financial statements. Accruals can be used to match revenue, expenses and prepaid items to the current accounting period. Accruals cannot be made for depreciation or bad debt expense.