Balance sheet accounts

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Balance sheet accounts have many different names, and can relate to reconciliation accounts, accrual accounts or others.

Using automatic reconciliation:

  • Completed reports on account balances and specification of which transactions the balance consists of
  • Ability to add comments to transactions within the application
  • Traceability throughout the process. You know who did what and when
  • Automatic reconciliation of accounts that require it
  • Security, in that no one could have entered incorrectly into the spreadsheet
  • The storage of all information, such as comments, transactions and balances
  • The opportunity for everyone to simultaneously produce reports

Manual work increases the risk of errors

The manual process is time-consuming and the possibility of error in transfers to spreadsheets is high. When errors occur between spreadsheets and accounting systems, the work has to be redone from the beginning. The lack of traceability and ability to see who did what and when leaves large gaps in control and security.

All accounts have to be reported in the monthly account. At the end of the month, many companies transfer all their balances from the balance sheet to spreadsheets such as Excel. Explanations for the balance and underlying transactions are entered manually. The report often has to also be printed and signed. Transaction-intensive accounts must be reconciled before being entered on the sheet. The spreadsheet can only be processed by one person at a time and all the numbers punched in manually. They are then printed and placed in binders. Some of the reported accounts consist of only a few items, while others must first be reconciled to explain the balance.

Settlement account/interim account

Accounts to be reconciled among themselves are called settlement accounts. They often consist of bank transactions, manual ledger entries, re-invoicing transactions, unplaced payments, gift vouchers etc. Reconciliation is performed to describe a distinct balance by reconciling debit against credit.

Adra Match gives you:

  • Automatic control of monthly balance and open items
  • Completed reports and balance specification for monthly account

Settlement accounts and interim accounts are often easy to reconcile as long as the balances are correct. At the end of the month, the balance and open items are reported in a spreadsheet,  e.g. under an Excel tab. When the balance is not correct, it can take some time to understand why. When using Adra Match’s solution, the difference can be discovered immediately. This opening balance has to be taken into account at next month’s reconciliation.

Accruals account

There are two types of accruals accounts. Accrued costs and prepaid costs.

Adra Match gives you:

  • Control of the opening balance at invoice level.
  • Track all vendor payments accrued this month
  • Clear overview of accrued payments
  • Report on invoices forming the balance on the account
  • Completed report for monthly account

Data matching of prepaid costs

The basis for a prepaid cost is an invoice paid, making bookkeeping relatively simple. The account on which the accrual is registered often consists of both automatic accrual entries and manually accrual entries.

Data matching of accrued expenses

Accrued expenses consist of future costs for which there are no vouchers for as yet. The account is often less organised than one with prepaid costs. The problem is usually to reconcile the account and get a report showing the costs accrued in detail.