What qualifies as an adjusting entry

An adjusting journal entry corrects balances for timing, estimates, errors, or accruals. Document the rationale and attach source schedules so auditors can verify the basis.

Who must approve an AJE

Approval authority is company‑specific. Typically a manager or controller approves based on amount thresholds and role‑based limits to maintain internal control.

Can AJEs be signed electronically

Yes; electronic signatures are legally valid under the ESIGN Act and UETA when intent, consent, attribution, and record retention are present.

How long should supporting docs be kept

Retain supporting documents at least 3 years from tax filing (IRC §6501(a)); healthcare records require 6 years under HIPAA (45 CFR §164.530(j)).

What to do if an AJE is incorrect

Prepare a reversing or correcting entry with clear explanation and approval. Preserve the original AJE and correction trail for audit transparency.

When is notarization needed

Notarization is rarely required for internal AJEs; use notarization only if your policy or a third‑party agreement specifically requires it.

Business AJE Template

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business AJE Template

This General Business Agreement (the "Agreement") is entered into as of Effective Date: by and between Client Name: and Contractor Name: .

Parties

Client Name Client Address Contractor Name Contractor Address

WHEREAS

WHEREAS, Client requires professional adjusting journal entry services, including preparation, review, documentation, and posting of Adjusting Journal Entries ("AJE Services") to ensure that Client's financial statements reflect accrual basis accounting in accordance with applicable accounting principles; and

WHEREAS, Contractor represents that it possesses the necessary qualifications, experience, and personnel to perform AJE Services and agrees to provide such services under the terms and conditions set forth in this Agreement; and

WHEREAS, the parties wish to set forth their mutual rights and obligations with respect to the performance of the AJE Services and related deliverables.

Scope of Work

Contractor shall provide the following AJE Services, as further described and limited by the specifications below and any attached exhibits. Contractor shall perform services in a professional and workmanlike manner consistent with industry standards.

Detailed Scope

Payment Terms

Client shall pay Contractor the fees set forth below in consideration for the AJE Services. All amounts are payable in U.S. dollars unless otherwise agreed in writing.

Total Fee Payment Schedule / Milestones

Invoices are due and payable within days from invoice date. Late payments shall incur interest at a rate of percent per month (or the maximum rate permitted by law, if lower), calculated monthly on the outstanding balance, together with all collection costs, including attorneys' fees, reasonably incurred by Contractor.

Term and Termination

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon written notice to the other party delivered at least days prior to the effective date of termination. Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice describing the breach.

Upon termination, Contractor shall deliver all work in progress and Client shall pay Contractor for services performed and expenses incurred through the effective date of termination.

Confidentiality

"Confidential Information" means nonpublic, proprietary, or confidential information disclosed by one party (the "Disclosing Party") to the other (the "Receiving Party"), whether disclosed orally, visually, or in writing, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Confidential Information includes, without limitation, accounting records, financial data, customer lists, and business plans.

The Receiving Party shall (a) maintain the confidentiality of the Confidential Information using at least the same degree of care used to protect its own confidential information but in no event less than reasonable care; (b) use Confidential Information solely to perform its obligations under this Agreement; and (c) not disclose Confidential Information to any third party except to employees, agents, or subcontractors with a need to know and who are bound by confidentiality obligations no less restrictive than those in this Agreement.

Confidential Information shall not include information that: (i) is or becomes publicly available through no breach of this Agreement by the Receiving Party; (ii) is rightfully received from a third party without restriction; (iii) is independently developed without use of the Disclosing Party's Confidential Information; or (iv) is required to be disclosed by law, provided the Receiving Party gives prompt prior written notice and cooperates to obtain a protective order.

The confidentiality obligations hereunder shall survive termination or expiration of this Agreement for a period of three (3) years, except with respect to trade secrets, which shall remain confidential for so long as they constitute trade secret information under applicable law.

Liability; Indemnification

Each party shall indemnify, defend, and hold harmless the other party from and against any claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of the indemnifying party's breach of this Agreement or its gross negligence or willful misconduct. Except for obligations arising from gross negligence, willful misconduct, or indemnification obligations, neither party's aggregate liability shall exceed the total fees paid to Contractor under this Agreement during the twelve (12) months preceding the event giving rise to liability.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that state for any dispute arising out of this Agreement.

Entire Agreement

This Agreement, together with any exhibits and written amendments signed by both parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral. No modification of this Agreement shall be effective unless executed in writing by both parties.

Notices

All notices required or permitted under this Agreement shall be in writing and shall be delivered to the addresses set forth below or to such other address as either party may designate by notice to the other in accordance with this Section.

Notice Address for Client Notice Address for Contractor

Miscellaneous

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The headings used in this Agreement are for convenience only and shall not affect interpretation. Neither party may assign this Agreement without the prior written consent of the other, except that Contractor may assign to an affiliate or successor in interest.

Client:

By:

Date:

Contractor:

By:

Date:

What the Business AJE Template Is and when teams use it

A Business AJE (Adjusting Journal Entry) Template is a standardized accounting form used to record adjustments to ledger balances at month‑end, quarter‑end, or year‑end. It captures the accounts affected, debit and credit amounts, a clear description of the reason for the adjustment, supporting reference numbers, and approval metadata. Organizations use AJEs to correct timing differences, accruals, reallocations, and errors so the general ledger reflects accurate financial position and results. The template supports auditability by documenting authorization, source documentation, and posting details in a consistent format.

Why a consistent AJE template matters for financial control

A standardized Business AJE Template reduces posting errors, preserves an auditable trail, and speeds period‑close by making required fields and approvals explicit. It supports internal controls, helps external auditors trace adjustments to source documentation, and reduces the risk of restatements or regulatory inquiry.

Primary users and reviewers of the AJE template

The Business AJE Template is completed by accounting staff and reviewed by managers or controllers; approvers vary by company policy and materiality thresholds.

Staff accountants preparing month‑end adjustments to accruals, prepaids, and revenue reclassifications.
Finance managers or controllers who review for accuracy, completeness, and proper accounting policy application.
Internal audit or external auditors who inspect supporting evidence and approval history during reviews.

Roles and approval limits should be documented in the company's accounting policies so signers and reviewers are consistent and authorized.

Core components every professional AJE template should include

A well‑designed Business AJE Template balances structured data fields with space for narrative explanation so adjustments are both machine‑readable and human‑verifiable.

Header

Template header with company name, fiscal period, and unique AJE ID to ensure traceability and version control.

Date & Period

Clear Effective Date and Accounting Period fields (MM/DD/YYYY and period code) to determine posting timing and disclosure treatment.

Accounts

Debit and credit account codes with descriptions and segments (cost center, project) to route posting and reporting properly.

Amounts

Line‑level debit/credit amounts with currency, rounding rules, and a total summary for sign‑off and automated posting checks.

Narrative

Concise explanation of the reason, reference to source documents, and links or IDs for supporting invoices or schedules.

Approvals

Signer name, role, date, and an audit trail of prior reviews to meet internal control and audit requirements.

Security and compliance checkpoints to include

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest

Audit Trail: Timestamped actions and IP for each signer

Authentication: Multi‑factor or email + code options

HIPAA/BAA: BAA required if PHI is present

Access Controls: Role‑based permissions and logging

Certifications: SOC 2 Type II, ISO 27001 available

Stepwise process to prepare and post a Business AJE

Follow these steps consistently to prepare an AJE, obtain approvals, and post to the general ledger with a documented audit trail.

01

1. Draft Entry: Complete fields and attach support
02

2. Manager Review: Verify rationale and account mapping
03

3. Approval: Obtain authorized electronic signature
04

4. Post & Archive: Post to GL and retain documentation

Configuring an online AJE workflow for consistency

When creating a digital workflow, define field rules and approval routing to automate checks and reduce errors.

Field	Configuration
Required Fields	Make AJE ID, Effective Date, and Debit/Credit required
Validation Rules	Auto‑sum debits vs credits; flag mismatches
Approval Routing	Route by amount threshold and cost center owner
Retention Policy	Auto archive to records location after posting

Where completed AJEs should be sent or filed

A completed AJE moves from preparer to reviewer to approver and then to the general ledger with supporting documents stored per retention policy.

To Controller: Send for managerial review and sign‑off
To Approver: Final authorization recorded with timestamp
To GL Team: Posting entry created and reconciled
To Records: Store support in central archive

Technical considerations for digital completion and distribution

Choose a platform that supports fillable fields, audit trails, and the integrations your finance stack uses.

File formats: PDF, DOCX, or Excel supported
Integrations: Connectors for NetSuite, Salesforce, or Google Workspace
Authentication: Email, SMS code, or advanced auth

Ensure the selected platform meets your security and retention requirements and can export signed records for audit and archival.

Typical timelines and timing expectations for AJEs

AJEs are often tied to period‑close calendars and audit schedules; set internal deadlines to coordinate preparation, review, and posting.

Monthly close deadline:

Complete and post AJEs before month‑end close

Quarterly review:

Ensure AJEs supporting quarter adjustments are reviewed prior to quarter close

Year‑end audit:

Provide final AJE package to auditors during fieldwork

IRS retention baseline:

Retain financial records at least 3 years (IRC §6501(a))

SEC record rule:

Broker‑dealer records may require 6 years (17 CFR §240.17a‑4) where applicable

Key processing milestones in the AJE lifecycle

These stages represent the numbered checkpoints from creation through archival during a single close cycle.

01

Draft and supporting evidence

Preparer completes entry and collects source documents

02

Managerial review

Reviewer confirms account coding and explanation

03

Authorized approval

Designated approver signs electronically

04

Posting and archival

Entry is posted to GL and documents archived

Common mistakes when preparing Business AJEs

Incomplete supporting documentation leads to audit questions and extended review cycles, delaying close.
Mismatched names, dates, or period codes cause mispostings and may require reversing entries.
Failing to route for proper approval undermines internal controls and can trigger compliance exceptions.
Using ambiguous narratives or vague descriptions increases auditor effort and reduces traceability.

Risks and potential consequences of incorrect or unsupported AJEs

Audit Adjustment: Restatement risk

Regulatory Review: Increased scrutiny

Tax Exposure: Potential IRS adjustments

Internal Control Failure: Control deficiency noted

Financial Misstatement: Misstated results

Delayed Close: Longer reconciliation cycles

Illustrative examples of how teams use an AJE template

Two practical scenarios show common AJE use: routine period adjustments and one‑time corrections tied to audit findings.

Month‑end Accrual Adjustment

Preparer documents temporary accrual for utilities expense

One reviewer checks allocation to cost centers
The approved AJE posts to the GL and stores vendor invoice and manager approval for audit readiness.

Audit‑requested Correction

External auditor identifies misclassification of an expense

Controller prepares correcting AJE with supporting schedule
Correction is approved, posted, and retained with auditor working papers for the fiscal year‑end file.

Comparing eSignature pricing and basic capabilities for AJE approval workflows

Basic pricing and key capability differences affect cost and compliance when choosing an eSignature platform for AJE approvals; signNow is listed first as required.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7‑day trial	Varies	Varies	Varies	Varies
Bulk Send	Yes (Premium)	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about the Business AJE Template

Answers to common questions about preparing, approving, and retaining AJEs to reduce errors and support audit readiness.

Need help? Contact support

What qualifies as an adjusting entry
An adjusting journal entry corrects balances for timing, estimates, errors, or accruals. Document the rationale and attach source schedules so auditors can verify the basis.
Who must approve an AJE
Approval authority is company‑specific. Typically a manager or controller approves based on amount thresholds and role‑based limits to maintain internal control.
Can AJEs be signed electronically
Yes; electronic signatures are legally valid under the ESIGN Act and UETA when intent, consent, attribution, and record retention are present.
How long should supporting docs be kept
Retain supporting documents at least 3 years from tax filing (IRC §6501(a)); healthcare records require 6 years under HIPAA (45 CFR §164.530(j)).
What to do if an AJE is incorrect
Prepare a reversing or correcting entry with clear explanation and approval. Preserve the original AJE and correction trail for audit transparency.
When is notarization needed
Notarization is rarely required for internal AJEs; use notarization only if your policy or a third‑party agreement specifically requires it.

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