Having various provisions can cause a problem in itself. It’s not to say that you shouldn’t have numerous provisions though. If the situations demand one then so be it.

However, with just more than one provision you need to first off keep a detailed list of them including information on what’s the essence of each, updated information about due dates, relevance, i.e. if the provision should still be there etc. 

Another thing, which must always be taken care of, is revaluing the provision amounts. Obviously if the provision is for a specific amount and the conditions have not changed, the value stays the same, however especially when the amount is estimated to begin with, it needs to be assessed as often as needed to ensure it’s in a updated amount.

Thirdly, say that you have a provision for something that most probably realizes after two years. Thing to remember after those years is to first look if you had made a provision back in the day or not. Failing in doing so may result in double expense entry for your company and a liability account that’s not going to be debited off your balance sheet.

At the end of the day it’s like managing any other account that has more than one item within the balance – detailed ledgers and knowing what’s within really.